Under absorption costing what was the per unit cost of the units produced? Chapt

Question

Under absorption costing what was the per unit cost of the units produced? Chapter 7 SeeWell Manufacturing produces a single product, fluorescent lightbulbs. They reported the folld information from their operations last period: Cost of Direct Materials used in production Cost of Direct Labor wages Variable Manufacturing Overhead Fixed Manufacturing Overhead Total units produced $20,000 $20,000 $10,000 $50,000 10,000 Under absorption costing, what was the per-unit cost of the units produced? A. $10.30 B. $9.50 C. $8.75 D. $9.85

Explanation / Answer

Under absorption costing per unit cost :

Under absorption costing per unit cost is 10

Direct material used 20000 Direct labour 20000 Variable manufacturing overhead 10000 Fixed manufacturing overhead 50000 Total product cost 100000 Units 10000 Unit product cost 10 per unit

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