Question-
Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:
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Number of units produced
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8,800
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|
Variable costs per unit:
|
|
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Direct materials
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$57
|
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Direct labor
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$41
|
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Variable manufacturing overhead
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$6
|
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Variable selling and administrative expenses
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$10
|
|
Fixed costs:
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|
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Fixed manufacturing overhead
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$299,200
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Fixed selling and administrative expenses
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$651,200
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There were no beginning or ending inventories. The absorption costing unit product cost was:
a. $98
b. $138
c. $104
d. $222
Additional requirement-
This question belongs to Basic Accounting problem and it explanation about calculation of cost of per unit under absorption costing.