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12 July, 08:41

Ramos Company has the following unit costs: Variable manufacturing overhead$15 Direct materials 13 Direct labor 17 Fixed manufacturing overhead 12 Fixed marketing and administrative 11 What cost per unit would be used for product costs under full absorption costing?

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  1. 12 July, 10:48
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    Unitary cost = $56

    Explanation:

    Giving the following information:

    Variable manufacturing overhead $15

    Direct materials $13

    Direct labor $17

    Fixed manufacturing overhead $12

    Fixed marketing and administrative $11

    Under absorption costing, the fixed overhead is allocated to the product cost:

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

    Unitary cost = 13 + 17 + 15 + 11 = $56
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