Gangwer Corporation produces a single product and has the following cost structure:
|
Number of units produced each year
|
8,000
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$53
|
|
Direct labor
|
$23
|
|
Variable manufacturing overhead
|
$15
|
|
Variable selling and administrative expense
|
$11
|
|
Fixed costs per year:
|
|
|
Fixed manufacturing overhead
|
$312,000
|
|
Fixed selling and administrative expense
|
$224,000
|
The absorption costing unit product cost is (Do not round your intermediate calculations.):
$130.0
$92.0
$141.0
$39.0