Green Enterprises produces a single product. The following data were provided by the company for the most recent period:
-Under absorption costing,the unit product cost is:
A)$20
B)$18
C)$15
D)$25

Question

Green Enterprises produces a single product. The following data were provided by the company for the most recent period: 
-Under absorption costing,the unit product cost is:
A)$20 
B)$18 
C)$15 
D)$25

Quizplus · Accepted Answer

Under absorption costing, the unit product cost includes both variable and fixed manufacturing costs. In this case, the variable manufacturing cost is $10 and the fixed manufacturing cost is $8, so the unit product cost is $10 + $8 = $18.

Green Enterprises Produces a Single Product