Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products:
Refer to Anderson Corporation. Under absorption costing, the standard production cost per unit for the current year was
A) $ 7.30.
B) $11.30.
C) $11.55.
D) $13.05.

Question

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products:
 Refer to Anderson Corporation. Under absorption costing, the standard production cost per unit for the current year was
A) $ 7.30. 
B) $11.30. 
C) $11.55. 
D) $13.05.

Quizplus · Accepted Answer

According to absorption costing, the standard production cost per unit includes both variable and fixed overhead costs. Therefore, the total standard production cost per unit is $5.00 (direct materials) + $2.00 (direct labor) + $4.30 (fixed overhead) = $11.30.

Anderson Corporation Anderson Corporation Has the Following Standard Costs Associated