2 Tremble Corporation manufactures and sells one product. The following informat

Question

2 Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations Variable costs per unit Direct materials 95 Fixed costs per year Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $1,454,200 $4,032,100 $5,040,200 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 66,100 units and sold 63,800 units. The company's only product is sold for $270 per unit Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $61 of fixed manufacturing overhead to each unit that is produced. The unit product cost under this costing system it:

Explanation / Answer

Answer: $178 per unit

Fixed selling cost should not be considered here, since this is not product cost but period cost.

Unit cost = Material cost + Labor cost + Manufacturing overhead cost

                = 95 + 22 + 61

                = $178

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.