Beamish Inc which produces a single product has provided the

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced Variable costs per unit: 8,300 120 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense $ 116 $10 $273,900 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $589,300 There were no beginning or ending inventories. The absorption costing unit product cost was:

Solution

(figure in $) Unit product cost under absorption costing Direct materials 120 Direct labor 116 Varaible manufacturing overhead 4 Fixed manufacturing overhead cost 33 (273,900 / 8,300) Absorption costing unit product cost 273