During the last year, Snyder Co. produced 10,000 units of its only product. Costs incurred by Snyder during the year were as follows:
-The unit product cost under absorption costing was:
A)$5.43
B)$3.81
C)$4.71
D)$4.12

Question

During the last year, Snyder Co. produced 10,000 units of its only product. Costs incurred by Snyder during the year were as follows: 
-The unit product cost under absorption costing was:
A)$5.43 
B)$3.81 
C)$4.71 
D)$4.12

Quizplus · Accepted Answer

The unit product cost under absorption costing includes all manufacturing costs, including fixed overhead costs, which are allocated to each unit produced. Based on the information given, the total manufacturing cost per unit is $4.71. This cost includes direct materials ($1.20), direct labor ($2.00), variable manufacturing overhead ($0.20), and fixed manufacturing overhead ($1.31). Therefore, the best choice is C.

During the Last Year, Snyder Co