A manufacturer reports the following costs to produce 10,000 units in its first year of operations:
Direct materials, $10 per unit
Direct labor, $6 per unit,
Variable overhead, $70,000
Fixed overhead, $120,000.
The total product cost per unit under absorption costing is:
a) $23 per unit.
b) $16 per unit.
c) $35 per unit.
d) $17 per unit.
e) $28 per unit.
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