SSonoma State UniversityCh6 Quiz Question 4 (of 10) Hossack Corporetion produces

Question

SSonoma State UniversityCh6 Quiz Question 4 (of 10) Hossack Corporetion produces a single product and has the following cost structure 3,000 Number of units produced each yer Variable costs per unit: Direct labor.. Variable manufacturing overhead.. Variable selling and administrative expenses.... $17 $85 $1 $8 Fixed costs per year Fixed manufacturing overhead.. Fixed selling and administrative expenses. $90,000 $270,000 The unit product cost under absorption costing s O $231 per unt O $103 per unt O $133 per unt O $102 per un FS F11

Explanation / Answer

Absorption costing is a method in which product cost include variable as well as fixed cost

Calculation to be made as follows :

Fixed cost per unit =90000 +270000 = 360000/3000 = 120

Product cost per unit = 120 +17 + 85 + 1 +8 = 231

Hence from the above conclusions option A is correct

Please please upvote it at the end thank you so much

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