The selected answer is not my answer. I just had to select one at the time. Dext

Question

The selected answer is not my answer. I just had to select one at the time.

Dexter Company incurred the following costs while producing 480 units: direct materials, $12 per unit, direct labor, $22 per unit, variable manufacturing overhead, $13 per unit, total fixed manufacturing overhead costs, $7,680, variable selling and administrative costs, $2 per unit, total fixed selling and administrative costs, $4,320. There are no beginning inventories. What is the unit product cost using absorption costing? O A. $47 per unit O B. $74 per unit O C. $49 per unit O D. $63 per unit

Explanation / Answer

Fixed manufacturing overhead cost/unit=(7680/480)=$16

Hence absorption costing unit product cost=Direct material+Direct labor+Variable manufacturing overhead+Fixed manufacturing overhead

=(12+22+13+16)

=63 per unit.

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