Question: Ragins Corporation produces a single product and has the following cost structure:
| Number of units produced |
|
|
1,000 |
| Variable costs per unit |
|
|
|
| Direct materials |
|
|
85 |
| Direct labor |
|
|
69 |
| Variable manufacturing overhead |
|
|
5 |
| Variable selling and administative |
|
|
6 |
| Fixed Costs |
|
|
|
| Fixed manufacturing overhead |
|
|
60,000 |
| Fixed selling and administrative |
|
|
27,000 |
The absorption costing unit product cost is:
A. $219 per unit
B. $154 per unit
C. $159 per unit
D. $252 per unit