Answer:
Total production cost $ 14 per unit Under absorption costing True
The total product cost per unit when 4,000 units are produced would be $22.50 False
Explanation:
Direct labor $ 2 per unit
Direct material $ 3 per unit
Variable overhead $ 4 per unit
Total variable $ 9 per unit
Fixed overhead ($50,000/10,000 units) $ 5 per unit
Total production cost $ 14
Production Costs involve the fixed costs under absorption Costing. So the total Product cost under absorption costing is $ 14.
When 4,000 units are produced the production costs are as follows
Absorption Costing: 4,000 * 14= $ 56,000
Variable Costing : 4000 * 9= $ 36,000
So the second statement is false.
