The unit product cost under absorption costing is:
A)$231 per unit
B)$103 per unit
C)$133 per unit
D)$102 per unit

Question

Quizplus · Accepted Answer

The unit product cost under absorption costing is calculated as follows:
Direct Materials + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead/Number of Units Produced = $60 + $25 + $10 + ($300,000 / 20,000) = $60 + $25 + $10 + $15 = $110/unit.
Adding the variable selling and administrative expenses of $10 and fixed selling and administrative expenses of $13, we get the total unit product cost as $133. Thus, the correct choice is C.

The Unit Product Cost Under Absorption Costing Is