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ABC Ltd. incurred $1,000,000 in direct materials costs, $800,000 in direct labor costs, and $600,000 in manufacturing overhead costs during the month. If the company

ABC Ltd. incurred $1,000,000 in direct materials costs, $800,000 in direct labor costs, and $600,000 in manufacturing overhead costs during the month. If the company produced 200,000 units of a product,

Cost Component

Amount ($)

Direct Materials

$1,000,000

Direct Labor

$800,000

Manufacturing Overhead

$600,000

Units Produced

200,000

calculate the cost per unit using the absorption costing method.

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