Blackbird,Incorporated reports the following information regarding its production cost:
$\begin{array}{ll}
\text { Units produced } & 39,000 \text { units } \
\text { Direct labor } & \$ 13 \text { per unit } \
\text { Direct materials } & \$ 17 \text { per unit } \
\text { Variable overhead } & \$ 7,800,000 \text { in total } \
\text { Fixed overhead } & \$ 9,750,000 \text { in total }
\end{array}$

a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.

Question

Blackbird,Incorporated reports the following information regarding its production cost:
 $\begin{array}{ll}
\text { Units produced } & 39,000 \text { units } \
\text { Direct labor } & \$ 13 \text { per unit } \
\text { Direct materials } & \$ 17 \text { per unit } \
\text { Variable overhead } & \$ 7,800,000 \text { in total } \
\text { Fixed overhead } & \$ 9,750,000 \text { in total }
\end{array}$
 
a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.

Quizplus · Accepted Answer

The Answer of Blackbird,Incorporated reports the following information regarding its production cost:
 $\begin{array}{ll}
\text { Units produced } & 39,000 \text { units } \
\text { Direct labor } & \$ 13 \text { per unit } \
\text { Direct materials } & \$ 17 \text { per unit } \
\text { Variable overhead } & \$ 7,800,000 \text { in total } \
\text { Fixed overhead } & \$ 9,750,000 \text { in total }
\end{array}$
 
a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.

Blackbird,Incorporated Reports the Following Information Regarding Its Production Cost ACompute Production Cost Per Unit Under Variable Costing