A manufacturer reports the following costs to produce 19,500 units in its first year of operations: ⚫ Direct materials: $19 per unit • Direct labor: $14 per unit • Variable overhead: $172,500 Fixed overhead: $228,000 Of the 19,500 units produced, 18,200 were sold. Calculate the total unit product cost using absorption costing.

A manufacturer reports the following costs to produce 19,500 units in its first year of operations: ⚫ Direct materials: $19 per unit • Direct labor: $14 per unit • Variable overhead: $172,500 Fixed overhead: $228,000 Of the 19,500 units produced, 18,200 were sold. Calculate the total unit product cost using absorption costing.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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