Question

Ramos Company has the following unit costs: Variable manufacturing overhead Direct materials Direct labor Fixed manufacturing
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Answer #1

Under Absorption Costing:

Cost per unit = Direct Material + Direct labour +

Variable Manufacturing Overhead +

Fixed Manufacturing Overhead

Cost per unit = $15+$14+$19+$12

=$60

Conclusion: Third Option is Correct

Note: Fixed marketing and Administrative cost is not consider for calculating unit product cost

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