Emerald Pools, Inc. has provided the following information for the year 6,000 un

Question

Emerald Pools, Inc. has provided the following information for the year 6,000 units Units produced Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administration costs Fixed selling and administration costs $300 per unit $40 per unit $45per unit $65 per unit $480,000 per year $70 per unit $240,000 per year What is the unit product cost using absorption costing? (Round any intermediate calculations and your final answer to the nearest dollar.) O A. $150 O B. $230 O C. $155 O D. $85

Explanation / Answer

B. $230

Total unit product cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead

= $40 + $45 + $65 + ($480,000 / 6,000)

= $230

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