McMillan, Inc. has the following cost data:
$$\begin{array} { | l | r | l | }
\hline \text { Direct materials } & \$ 38 & \text { per unit } \
\hline \text { Direct labor } & 52 & \text { per unit } \
\hline \text { Variable manufacturing overhead } & 15 & \text { per unit } \
\hline \text { Fixed manufacturing overhead } & 10,000 & \text { per year } \
\hline
\end{array}$$ Calculate the unit product cost using absorption costing when production is 200 units, 400 units, and 800 units.

Question

McMillan, Inc. has the following cost data:
 $$\begin{array} { | l | r | l | } 
\hline \text { Direct materials } & \$ 38 & \text { per unit } \
\hline \text { Direct labor } & 52 & \text { per unit } \
\hline \text { Variable manufacturing overhead } & 15 & \text { per unit } \
\hline \text { Fixed manufacturing overhead } & 10,000 & \text { per year } \
\hline
\end{array}$$ Calculate the unit product cost using absorption costing when production is 200 units, 400 units, and 800 units.

Quizplus · Accepted Answer

The Answer of McMillan, Inc. has the following cost data:
 $$\begin{array} { | l | r | l | } 
\hline \text { Direct materials } & \$ 38 & \text { per unit } \
\hline \text { Direct labor } & 52 & \text { per unit } \
\hline \text { Variable manufacturing overhead } & 15 & \text { per unit } \
\hline \text { Fixed manufacturing overhead } & 10,000 & \text { per year } \
\hline
\end{array}$$ Calculate the unit product cost using absorption costing when production is 200 units, 400 units, and 800 units.

McMillan, Inc Calculate the Unit Product Cost Using Absorption Costing When Production