What is shun unit product cost under absorption costing

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Reference no: EM13509202

Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun's operations for last year:

Unit product cost under variable costing.....$5.20 per unit
Fixed manufacturing overhead cost for the year.....$260,000
Fixed selling and administrative cost for the year.....$180,000
Units (calculators) produced and sold.....400,000

What is Shun's unit product cost under absorption costing for last year?

Answer
A $4.10
B $4.55
C $5.85
D $6.30

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning Inventory 0
Units produced 1,900
Units sold 1,700
Units in ending inventory 200
Variable costs per unit:
Direct materials $33
Direct labor $32
Variable manufacturing overhead $2
Variable selling and administrative $6

Fixed costs:

Fixed manufacturing overhead $72,200
Fixed selling and administrative $6,800

Reference no: EM13509202

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