Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year: What is Shun's absorption costing unit product cost for last year?
A)$4.10 per unit
B)$4.55 per unit
C)$5.85 per unit
D)$6.30 per unit

Question

Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year:  What is Shun's absorption costing unit product cost for last year?
A)$4.10 per unit 
B)$4.55 per unit 
C)$5.85 per unit 
D)$6.30 per unit

Quizplus · Accepted Answer

To calculate the absorption costing unit product cost, we need to add up all the manufacturing costs per unit:
Direct materials per unit: $1.10
Direct labor per unit: $0.75
Variable manufacturing overhead per unit: $0.70
Fixed manufacturing overhead per unit: $3.30 ($1,650,000/500,000 units)
Total absorption costing unit product cost: $5.85 per unit 11ea7998_5dae_d453_911b_753d348d710f_TB2627_00_TB2627_00

Shun Corporation Manufactures and Sells a Hand Held Calculator