Wolanski Corporation has provided the following data for its most recent year of

Question

Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit $ 48 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 110,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Units in beginning inventory 0 Units produced during the year 11,000 Units sold during the year 8,000 Units in ending inventory 3,000 The unit product cost under absorption costing is closest to:

Explanation / Answer

unit product cost under absorption costing=Direct materials +Direct labor+Variable manufacturing overhead+ Fixed manufacturing overhead

Fixed manufacturing overhead /unit=(110,000/11000)=$10/unit

which is equal to

=(11+5+5+10)

which is equal to

=$31 per unit.

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