Under absorption costing, a company had the following unit costs when 13,500 units were produced. $11.25 per Direct labor unit $11.75 per Direct material unit $9.50 per Variable overhead unit $13.00 per Fixed overhead ($175,500/ 13,500 units) unit $45.50 per Total production cost unit Compute the total production cost per unit under absorption costing if 87,750 units had been produced. O $45.50 O $35.50 O$34.50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Under absorption costing, a company had the following unit costs when 13,500 units
were produced.
$11.25 per
Direct labor
unit
$11.75 per
Direct material
unit
$9.50 per
Variable overhead
unit
$13.00 per
Fixed overhead ($175,500 / 13,500 units)
unit
Total production cost
$45.50 per
unit
Compute the total production cost per unit under absorption costing if 87,750 units had
been produced.
O $45.50
O $35.50
O $34.50
F2
F5
F6
F7
F8
O
F3
0+
#
F4
10
V
Transcribed Image Text:Under absorption costing, a company had the following unit costs when 13,500 units were produced. $11.25 per Direct labor unit $11.75 per Direct material unit $9.50 per Variable overhead unit $13.00 per Fixed overhead ($175,500 / 13,500 units) unit Total production cost $45.50 per unit Compute the total production cost per unit under absorption costing if 87,750 units had been produced. O $45.50 O $35.50 O $34.50 F2 F5 F6 F7 F8 O F3 0+ # F4 10 V
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education