Question

Sea Company reports the following information regarding its production costs:

Answer 1

Answer:

correct option is (B) $94.50

Explanation:

given data  

Units produced =  46,000 units

Direct labor = $39 per unit

Direct materials =  $32 per unit

Variable overhead =  $21 per unit

Fixed overhead =  $115,000

to find out

product cost per unit under absorption costing

solution

we find Fixed overhead that is

fixed overhead = $\frac{115000}{46000}$

fixed overhead = 2.5

so

total cost that is

total cost = Direct labor + Direct materials + Variable overhead + Fixed overhead

product cost = $39 + $32 + $21 + $2.5

product cost = $94.50

so correct option is (B) $94.50