Baughn Corporation, which has only one product, has provided the following data

Question

Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price s 115 Unite in beginning inventory Units produced Unite sold Units in ending inventory 6,600 ,400 200 Variable costs per uniti 26 46 Direct materials Direot labor Variable nanufacturing overhead Variable selling and administrative expense Pixed costss Pixed manufacturing overhead Pixed selling and administrative expense $105,600 51,200 What is the unit product cost for the month under absorption costing? O$79 per unit O $95 per unit OS104 per unit $88 per unit

Explanation / Answer

Fixed manufacturing overhead cost/unit=(105600/6600)=$16

Hence unit product cost=Direct materials+Direct labor+Variable manufacturing overhead+Fixed manufacturing overhead

=(26+46+7+16)

which is equal to

=$95 per unit(B).

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