Question

Given the following data, calculate product cost per unit under absorption costing.
Direct labor $7 per unit
Direct materials $1 per unit
Overhead
Total variable overhead $20,000
Total fixed overhead $90,000
Expected units to be produced 40,000 units
A. $8 per unit
B. $8.50 per unit
C. $10.25 per unit
D. $10.75 per unit
E. $12 per unit

Answer

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