Answer:
Unit product cost= $255
Step-by-step explanation:
Giving the following information:
Units produced 2,500
Direct materials $75 per unit
Direct labor $65 per unit
Variable manufacturing overhead $25 per unit
Fixed manufacturing overhead $225,000 per year
Under the absorption costing method, the unitary product cost is calculated using the direct material, direct labor, and unitary total overhead.
First, we need to determine the unitary fixed overhead:
Unitary fixed overhead= 225,000/2,500= $90
Unit product cost= 75 + 65 + (25 + 90)= $255