Multiple Choice 1. Un produced: der absorption costing, a company had the follow
ID: 2564229 • Letter: M
Question
Multiple Choice 1. Un produced: der absorption costing, a company had the following unit costs when 2,000 units were Direct labor Direct material Variable overhead Total variable $1 per unit $2 per unit $3 per unit $9 per unit $3 per unit 2 per unit Fixed overhead ($6,000/2,000 units) Total production cost 2. Given the following data, what is total product cost per unit under variable costing? $5 per unit Direct labor Direct materials Overhead $2 per unit Total variable overhead Total fixed overhead $10,000 $50,000 Expected units to be produced 10,000 unitsExplanation / Answer
1. Total Production Cost
Per Unit
Total cost for 2,000 units
Direct Labor
$1
$2,000
Direct Material
$2
$4,000
Variable Overhead
$3
$6,000
Fixed Overhead
$3
$6,000
Total Product cost
$9
$18,000
2. Total product cost under variable costing
Total cost
Per Unit
Direct Labor
$5
Direct Material
$2
Variable Overhead
$10,000
$1
Total Product cost
$8
1. Total Production Cost
Per Unit
Total cost for 2,000 units
Direct Labor
$1
$2,000
Direct Material
$2
$4,000
Variable Overhead
$3
$6,000
Fixed Overhead
$3
$6,000
Total Product cost
$9
$18,000
2. Total product cost under variable costing
Total cost
Per Unit
Direct Labor
$5
Direct Material
$2
Variable Overhead
$10,000
$1
Total Product cost
$8
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