Under absorption costing, a company had the following unit costs when 10,000 units were produced: Direct labor $ 2 per unit Direct material $ 3 per unit Variable overhead $ 4 per unit Total variable cost $ 9 per unit Fixed overhead cost ($50,000/10,000 units) $ 5 per unit Total production cost $ 14 per unit The total product cost per unit under absorption costing if 25,000 units had been produced would be $11. Group startsTrue or False True , unselected False , selected
Under absorption costing, a company had the following unit costs when 10,000 units were produced: Direct labor $ 2 per unit Direct material $ 3 per unit Variable overhead $ 4 per unit Total variable cost $ 9 per unit Fixed overhead cost ($50,000/10,000 units) $ 5 per unit Total production cost $ 14 per unit The total product cost per unit under absorption costing if 25,000 units had been produced would be $11. Group startsTrue or False True , unselected False , selected
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
Related questions
Question
Under absorption costing, a company had the following unit costs when 10,000 units were produced:
Direct labor $ 2 per unit
Direct material $ 3 per unit
Variable overhead $ 4 per unit
Total variable cost $ 9 per unit
Fixed overhead cost ($50,000/10,000 units) $ 5 per unit
Total production cost $ 14 per unit
The total product cost per unit under absorption costing if 25,000 units had been produced would be $11.
Group startsTrue or False
True , unselected False , selected
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning