Under absorption costing, a company had the following unit costs when 8,000 units were produced. $\begin{array}{lr}
\text { Direct labor } & \$ 8.50 \text { per unit } \
\text { Direct material } & \$ 9.00 \text { per unit } \
\text { Variable overhead } & \$ 6.75 \text { per unit } \
\text { Fixed overhead }(\$ 60,000 / 8,000 \text { units }) &\underline{ \$ 7.50 \text { per unit }} \
\text { Total production cost } & \underline{\$ 31.75 \text { per unit }}
\end{array}$ Compute the total production cost per unit under variable costing if 20,000 units had been produced.
A)$31.75
B)$27.25
C)$26.25
D)$24.25
E)$17.50

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The Answer of Under absorption costing, a company had the following unit costs when 8,000 units were produced. $\begin{array}{lr}
\text { Direct labor } & \$ 8.50 \text { per unit } \
\text { Direct material } & \$ 9.00 \text { per unit } \
\text { Variable overhead } & \$ 6.75 \text { per unit } \
\text { Fixed overhead }(\$ 60,000 / 8,000 \text { units }) &\underline{ \$ 7.50 \text { per unit }} \
\text { Total production cost } & \underline{\$ 31.75 \text { per unit }}
\end{array}$ Compute the total production cost per unit under variable costing if 20,000 units had been produced.
A)$31.75
B)$27.25
C)$26.25
D)$24.25
E)$17.50

Under Absorption Costing, a Company Had the Following Unit Costs