Under absorption costing, a company had the following unit costs when 8,000 units were produced. Compute the total production cost per unit under variable costing if 25,000 units had been produced.
A) $31.75
B) $27.25
C) $26.25
D) $24.25
E) $17.50

Question

Under absorption costing, a company had the following unit costs when 8,000 units were produced.  Compute the total production cost per unit under variable costing if 25,000 units had been produced.
A) $31.75 
B) $27.25 
C) $26.25 
D) $24.25 
E) $17.50

Quizplus · Accepted Answer

$8.50 DL + $9 DM + $6.75 VOH = $24.25

Under Absorption Costing, a Company Had the Following Unit Costs