Ask Question
26 September, 04:00

Adamson, Inc. has the following cost data for Product X: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 41 per unit 57 per unit 7 per unit 20,000 per year Learning Objective 2 Calculate the unit product cost using absorption costing and variable costing when production is 2,000 units, 2,500 units, and 5,000 units.

+2
Answers (1)
  1. 26 September, 06:50
    0
    Answer and Explanation:

    The computation of the unit product cost using absorption costing and variable costing is shown below

    Under absorption costing

    Particulars 2,000 units 2,500 units 5,000 units

    Direct materials per unit $41 $41 $41

    Direct labor per unit $57 $57 $57

    Variable manufacturing

    overhead per unit $7 $7 $7

    Fixed manufacturing

    overhead per unit $10 $8 $4

    ($20,000 : 2,000 units) ($20,000 : 2,500 units) ($20,000 : 5,000 units)

    Unit product cost $115 $113 $109

    Under variable costing

    Particulars 2,000 units 2,500 units 5,000 units

    Direct materials per unit $41 $41 $41

    Direct labor per unit $57 $57 $57

    Variable manufacturing

    overhead per unit $7 $7 $7

    Unit product cost $105 $105 $105
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Adamson, Inc. has the following cost data for Product X: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing ...” 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