Question

Dapple Company incurred the following costs while producing 400 units direct materials. 58 per unit direct labor, 522 per unit variable manufacturing overhead, 520 per unit total fixed manufacturing overhead costs $4,000, variable selling and administrative costs. 512 per unit total fixed selling and administrative costs. 53 200 There are no beginning inventories What is the unit product cost using absorption costing? O A 550 per unit OB. 580 per un OC. $60 per unit OD. 562 per un

Answer 1

Ans.	Option   c    $60 per unit
	In absorption costing method, the unit product cost is the sum of all manufacturing costs per unit
	whether it is fixed or variable.
	Unit product cost under Absorption Costing:
	Direct materials	$8
	Direct labor	$22
	Variable Overhead per unit	$20
	Fixed overhead per unit	$10
	Product Cost per unit	$60
	*Fixed overhead per unit = Fixed manufacturing overhead / Units produced
	$4,000 / 400
	$10 per unit