Question

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 4,600 Variable costs per unit: Direct materials $ 91 Direct labor $ 85 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 161,000 Fixed selling and administrative expense $ 326,600 There were no beginning or ending inventories. The absorption costing unit product cost was:

Answer 1

The answer is $ 218

Step-by-step explanation:

Solution

Given that:

Description Amount

Direct materials $91

Direct labor $85

Variable manufacturing overhead $7

Fixed manufacturing overhead

( $ 161,000/ 4,600 units) $35

The unit product under absorption costing = $218

Therefore, the absorption costing unit product cost is $218