Question

Shore Company reports the following information regarding its production cost. Units produced 36,000 units Direct labor...

Shore Company reports the following information regarding its production cost.

Units produced 36,000 units
Direct labor $ 31 per unit
Direct materials $ 32 per unit
Variable overhead $ 10 per unit
Fixed overhead $ 102,920 in total


Compute product cost per unit under absorption costing.

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Answer #1

Fixed overhead cost per unit=102920/36,000=$2.86 per unit(Approx)

product cost per unit under absorption costing=Direct labor+Direct materials+Variable overhead+Fixed overhead

=31+32+10+2.86

=75.86 per unit(Approx).

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