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Required information Exercise 19-3 (Static) Income statement under absorption costing and variable costing LO P1, P2 Skip to question [The following information applies to the

Required information

Exercise 19-3 (Static) Income statement under absorption costing and variable costing LO P1, P2

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[The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $140 per unit.

Direct materials $ 60 per unit
Direct labor $ 22 per unit
Variable overhead $ 8 per unit
Fixed overhead $ 528,000 per year
Variable selling and administrative expenses $ 11 per unit
Fixed selling and administrative expenses $ 105,000 per year

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1a. Assume the company uses absorption costing. Determine its total product cost per unit. Answer is complete but not entirely correct

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