A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the absorption costing unit product cost for the month?
A)$107
B)$94
C)$87
D)$114

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:  What is the absorption costing unit product cost for the month?
A)$107 
B)$94 
C)$87 
D)$114

Quizplus · Accepted Answer

Unit fixed manufacturing overhead = $130,000 F1F1F1S1F1F1F10 6,500 = $20
Unit product cost = Direct materials + Direct labor + Variable manufacturing overhead cost + Fixed manufacturing overhead cost
= $26 + $55 + $6 + $20
= $107

A Manufacturing Company That Produces a Single Product Has Provided