Under absorption costing, a company had the following unit costs when 9,000 units were produced. Compute the total product cost per unit under variable costing if 30,000 units had been produced.
A) $31.75
B) $28.25
C) $23.45
D) $15.25
E) $20.75

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 variable costing if 30,000 units had been produced.
A) $31.75 
B) $28.25 
C) $23.45 
D) $15.25 
E) $20.75

Quizplus · Accepted Answer

$7.25 DL + $8 DM + $5.50 VOH = $20.75

Under Absorption Costing, a Company Had the Following Unit Costs