TB TF Qu. 06-10 (Static) Assume a company had the following...

Assume a company had the following production costs:

Direct labor	$ 2	per unit
Direct material	$ 3	per unit
Variable overhead	$ 4	per unit
Total variable cost	$ 9	per unit
Fixed overhead cost ($50,000/10,000 units)	$ 5	per unit
Total production cost	$ 14	per unit

Under absorption costing, the total product cost per unit when 4,000 units are produced would be $22.50.

True or False