Chapter 21, Problem S21A.22SE

Computing absorption cost per unit

Abrey, Inc. has the following cost data for product X:

Direct material $41 per unit
Direct labor 60 per unit
Variable manufacturing overhead 8 per unit
Fixed manufacturing overhead 5,000 per year

Calculate the unit product cost using absorption costing when production is 250 units, 500 units, and 2,500 units.