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ABC Ltd. incurred $1,200,000 in direct materials costs, $900,000 in direct labor costs, and $600,000 in manufacturing overhead costs during the month. If the company

ABC Ltd. incurred $1,200,000 in direct materials costs, $900,000 in direct labor costs, and $600,000 in manufacturing overhead costs during the month. If the company produced 300,000 units of a product,

Cost Component

Amount ($)

Direct Materials

$1,200,000

Direct Labor

$900,000

Manufacturing Overhead

$600,000

Units Produced

300,000

calculate the cost per unit using the absorption costing method.

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