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current period. d. absorption costing companies charge the ng companies charge the variable name 7. Based on below informatio
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Answer #1

Calculation of unit product cost under Variable costing

Direct material 25
Direct labor 45
Variable manufacturing overhead 15
unit product cost $85

Calculation of unit product cost under Absorption costing

Direct material 25
Direct labor 45
Variable manufacturing overhead 15
Fixed manufacturing overhead (5,000/500) 10
unit product cost $95

Correct option is (b)

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