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Under absorption costing, a company had the following per unit costs when 1 2 , 0 0 0 units were produced. Direct materials $ 3

Under absorption costing, a company had the following per unit costs when 12,000 units were produced.
Direct materials $ 3.40
Direct labor 2.40
Variable overhead 4.40
Fixed overhead ($60,000/12,000 units)5.00
Total product cost per unit $ 15.20
1. Compute total product cost per unit under absorption costing if instead 15,000 units are produced. Total fixed overhead remains at $60,000.
2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease?Under absorption costing, a company had the following per unit costs when 12,000 units were produced.
Direct materials
Direct labor
Variable overhead
Fixed overhead ( $60,00012,000 units)
Total product cost per unit
Compute total product cost per unit under absorption costing if instead 15,000 units are produced. Total fixed overhead remains at
$60,000.
If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease?
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Required 1
Compute total product cost per unit under absorption costing if instead 15,000 units are produced. Total fixed overhead
remains at $60,000.(Round your answers to 2 decimal places.)
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