2018SU-ACCT-2302-21298 (1) Test: Exam chapter 20 to 22 This Question: 2 pts Last

Question

2018SU-ACCT-2302-21298 (1) Test: Exam chapter 20 to 22 This Question: 2 pts Last year, Adara Company produced 15,000 units and sold 13,000 units. The company had no beginning inventory. They incurred the following costs Direct materials per unit Direct labor per unit Variable overhead per unit Total fixed manufacturing $14 $11 $7 $135,000 Total selling and administrative Adara's product cost per unit under absorption costing is OA, S32 B. S41 O D. $42 Click to select your answer. Save for Later Type here to search

Explanation / Answer

Answer:

Adara's product cost per unit under absorption costing is =$41

Working notes for the above answer is as under

Particular

Amount $

Direct material

14

Direct labor

11

variable overhead per unit

7

Fixed overhead per unit (135,000/15000)

9

Total Product cost under absorption costing

41

Particular

Amount $

Direct material

14

Direct labor

11

variable overhead per unit

7

Fixed overhead per unit (135,000/15000)

9

Total Product cost under absorption costing

41

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