Question

Ramos Company has the following unit costs:    Variable manufacturing overhead $ 13 Direct materials 12...

Ramos Company has the following unit costs:
  

Variable manufacturing overhead $ 13
Direct materials 12
Direct labor 17
Fixed manufacturing overhead 10
Fixed marketing and administrative 8


What cost per unit would be used for product costing under full absorption costing?

A. $42

B. $52

C. $60

D. $29

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Answer #1

under full absorption costing; cost per unit =Direct materials+Direct labor+Variable manufacturing overhead+Fixed manufacturing overhead

=(12+17+13+10)

which is equal to

=$52

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