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SIZIF [17.4K]
3 years ago
13

A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per un

it, Direct labor, $6 per unit, Variable overhead, $70,000, and Fixed overhead, $120,000. The total product cost per unit under absorption costing is
Business
1 answer:
andrew-mc [135]3 years ago
3 0

Answer:

Total unitary product cost= $35

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. <u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>

<u></u>

Unitary overhead= (120,000 + 70,000) / 10,000) $19

<u>Now, the total product cost:</u>

Total unitary product cost= 10 + 6 + 19

Total unitary product cost= $35

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3 years ago
Rogers Manufacturing's overhead at year-end was underapplied by $5,800, a small amount given the firm's size. The year-end journ
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3 years ago
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