Question

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 8,300 Variable costs per unit: Direct materials $ 120 Direct labor $ 116 Variable manufacturing overhead $ 4 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 273,900 Fixed selling and administrative expense $ 589,300 There were no beginning or ending inventories. The absorption costing unit product cost was:

Answer 1

Absorption costing unit product cost = $273

Step-by-step explanation:

As per the data given in the question,

Unit production cost under absorption costing:

Direct materials = $120

Direct labor = $116

Variable manufacturing overhead = $4

Fixed manufacturing overhead cost = ($273,900 ÷ $8,300) = $33

Absorption costing unit product cost = ($120 + $116 + $4 + $33)

= $273