Khanam Corporation, which has only one product, has provided the following data
ID: 2574518 • Letter: K
Question
Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $123 Units in beginning inventory 0 Units produced 6,600 Units sold 6,300 Units in ending inventory 300 Variable costs per unit: Direct materials $18 Direct labor $48 Variable manufacturing overhead $12 Variable selling and administrative $12 Fixed costs: Fixed manufacturing overhead $178,200 Fixed selling and administrative $25,800 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the unit product cost for the month under absorption costing? $105 per unit $78 per unit $90 per unit $117 per unit
Explanation / Answer
Fixed manufacturing overhead per unit = Fixed manufacturing overhead ÷ Units produced
Answer is "$105 per unit"
Absorption costing Direct materials $18 Direct labor 48 Variable manufacturing overhead 12 Fixed manufacturing overhead (178,200÷6,600) 27 Unit product cost $105Related Questions
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