Question

Sheffield Corp. sells its product for $70 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is

Answer 1

$40

Step-by-step explanation:

Calculation to determine what The per unit manufacturing cost under absorption costing is

The per unit manufacturing cost under absorption costing= $15 + $12 + $1 + ($720,000 / 60,000)

The per unit manufacturing cost under absorption costing= $15 + $12 + $1 +$12

The per unit manufacturing cost under absorption costing= $40

Therefore The per unit manufacturing cost under absorption costing is $40