Ask Question
3 May, 18:16

Sea Company reports the following information regarding its production costs: Units produced 54,000 units Direct labor $ 47 per unit Direct materials $ 40 per unit Variable overhead $ 29 per unit Fixed overhead $ 135,000 in total Compute the product cost per unit under absorption costing.

+3
Answers (1)
  1. 3 May, 19:58
    0
    Total unitary cost = $118.5

    Explanation:

    Giving the following information:

    Units produced 54,000 units

    Direct labor $47 per unit

    Direct materials $40 per unit

    Variable overhead $29 per unit

    Fixed overhead $ 135,000

    Under absorption costing, the unitary production cost is calculated using the direct material, direct labor, and total unitary overhead (including fixed overhead).

    Unitary cost = direct material + direct labor + unitary variable overhead + unitary fixed overhead

    Unitary fixed overhead = 135,000/54,000 = $2.5 per unit

    Total unitary cost = 47 + 40 + 29 + 2.5 = $118.5
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sea Company reports the following information regarding its production costs: Units produced 54,000 units Direct labor $ 47 per unit Direct ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers