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ABC Ltd. incurred $3,000,000 in direct materials costs, $2,400,000 in direct labor costs, and $1,500,000 in manufacturing overhead costs during the month. If the company

ABC Ltd. incurred $3,000,000 in direct materials costs, $2,400,000 in direct labor costs, and $1,500,000 in manufacturing overhead costs during the month. If the company produced 2,000,000 units of a product,

Cost Component

Amount ($)

Direct Materials

$3,000,000

Direct Labor

$2,400,000

Manufacturing Overhead

$1,500,000

Units Produced

2,000,000

calculate the cost per unit using the absorption costing method.

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