Ask Question
18 June, 13:15

Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level. Assume that direct labor is a variable cost. Under absorption costing, the unit product cost is:

+1
Answers (1)
  1. 18 June, 17:04
    0
    unit cost 24

    Explanation:

    DM 8

    DL 6

    MFO 10 (4 variable + 6 fixed)

    Absorption unit cost 24

    under absorption cost, selling and adminsitrative expense are considered period cost.

    They are not capitalized through inventory.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per unit, and ...” 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