Under absorption costing, a company had the following unit costs when 9,000 units were produced. Compute the total product cost per unit under absorption costing if 25,000 units had been produced.
A) $28.25
B) $23.45
C) $26.25
D) $20.75
E) $15.25

Question

Under absorption costing, a company had the following unit costs when 9,000 units were produced.  Compute the total product cost per unit under absorption costing if 25,000 units had been produced.
A) $28.25 
B) $23.45 
C) $26.25 
D) $20.75 
E) $15.25

Quizplus · Accepted Answer

$7.25 DL + $8 DM + $5.50 VOH + ($67,500/25,000) FOH = $23.45

Under Absorption Costing, a Company Had the Following Unit Costs