Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced		8,600
Variable costs per unit:
Direct materials	$	149
Direct labor	$	112
Variable manufacturing overhead	$	7
Variable selling and administrative expense	$	11
Fixed costs:
Fixed manufacturing overhead	$	301,000
Fixed selling and administrative expense	$	653,600

There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

• $261 per unit

• $303 per unit

• $268 per unit

• $390 per unit

1b.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$	150
Units in beginning inventory		0
Units produced		3,290
Units sold		2,870
Units in ending inventory		420
Variable costs per unit:
Direct materials	$	47
Direct labor	$	21
Variable manufacturing overhead	$	14
Variable selling and administrative expense	$	17
Fixed costs:
Fixed manufacturing overhead	$	115,150
Fixed selling and administrative expense	$	31,570

The total gross margin for the month under absorption costing is:

Multiple Choice

• $94,710
• $14,350
• $135,570
• $146,370