Assume a company had the following production costs:
$\begin{array}{ll}
\text { Direect labor } &\$ 20,000 \
\text { Direct material } &\$ 30,000 \
\text { Variable overhead } &\$ 40,000 \
\text { Fixed overhead } &\$ 50,000
\end{array}$ Under absorption costing, the total production cost per unit when 4,000 units are produced would be $22.50.

Question

Assume a company had the following production costs:
 $\begin{array}{ll}
 \text { Direect labor } &\$ 20,000 \
 \text { Direct material } &\$ 30,000 \
 \text { Variable overhead } &\$ 40,000 \
 \text { Fixed overhead } &\$ 50,000
\end{array}$ Under absorption costing, the total production cost per unit when 4,000 units are produced would be $22.50.

Quizplus · Accepted Answer

The Answer is False

Assume a Company Had the Following Production Costs Under Absorption Costing, the Total Production Cost Per Unit When