Ask Question
4 June, 17:55

Sea Company reports the following information regarding its production costs: Units produced 54,000 units Direct labor $ 47 per unit Direct materials $ 40 per unit Variable overhead $ 29 per unit Fixed overhead $ 135,000 in total Compute the product cost per unit under absorption costing.

+2
Answers (1)
  1. 4 June, 19:00
    0
    Total unitary cost = $118.5

    Explanation:

    Giving the following information:

    Units produced 54,000 units

    Direct labor $47 per unit

    Direct materials $40 per unit

    Variable overhead $29 per unit

    Fixed overhead $ 135,000

    Under absorption costing, the unitary production cost is calculated using the direct material, direct labor, and total unitary overhead (including fixed overhead).

    Unitary cost = direct material + direct labor + unitary variable overhead + unitary fixed overhead

    Unitary fixed overhead = 135,000/54,000 = $2.5 per unit

    Total unitary cost = 47 + 40 + 29 + 2.5 = $118.5
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sea Company reports the following information regarding its production costs: Units produced 54,000 units Direct labor $ 47 per unit Direct ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers