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Svetlanka [38]
3 years ago
12

Sea Company reports the following information regarding its production costs:

Business
1 answer:
kenny6666 [7]3 years ago
8 0

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

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