Question

QS 21-17B Computing unit cost under absorption costing LO P5 Vijay Company reports the following information regarding its production costs. Direct materials $ 10.60 per unit Direct labor $ 20.60 per unit Overhead costs for the year Variable overhead $ 10.60 per unit Fixed overhead $ 223,600 Units produced 26,000 units Compute its product cost per unit under absorption costing. (Round your final answer to 2 decimal places.)

Answer 1

Total unitary cost= $50.4

Step-by-step explanation:

Giving the following information:

Direct materials $ 10.60 per unit

Direct labor $ 20.60 per unit

Variable overhead $ 10.60 per unit

Fixed overhead $ 223,600

Units produced 26,000 units

Under absorption costing, the unit product cost is calculated using the direct material, direct labor, and total unitary fixed overhead.

Fixed unitary overhead= 223,600/26,000= $8.6

Total unitary cost= 10.6 + 20.6 + 10.6 + 8.6

Total unitary cost= $50.4