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Under absorption costing, a company had the following unit costs when 9,000 units were produced. Direct labor $ 7.25 per unit Direct material $ 8.00
Under absorption costing, a company had the following unit costs when 9,000 units were produced.
Direct labor | $ 7.25 | per unit |
---|---|---|
Direct material | $ 8.00 | per unit |
Variable overhead | $ 5.50 | per unit |
Fixed overhead ($67,500/9,000 units) | $ 7.50 | per unit |
Total production cost | $ 28.25 | per unit |
Compute the product cost per unit under absorption costing if 25,000 units had been produced.
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