Using this information from Planters, Inc., what is the cost per unit underabsorption costing? Round to the nearest penny, two decimal places.Planters, Inc dataCostProductionDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadAmount10,348 units$2482931031,008,619

Answered: Using this information from Planters,…

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Using this information from Planters, Inc., what is the cost per unit under
absorption costing? Round to the nearest penny, two decimal places.
Planters, Inc data
Cost
Production
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Amount
10,348 units
$248
293
103
1,008,619

Expert Solution

Step 1

Cost per unit under absorption costing includes the fixed manufacturing overhead, variable manufacturing overhead, direct labor and direct materials.

Under absorption costing, fixed manufacturing overhead is also a part of product costs. Fixed overhead is allocated to all units produced in the period.

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