Problem: Billy Bing Ping Pong Corporation manufactures a single product, premium pink ping pong balls. Each premium pink ping pong ball sells for $500.00 each. Selected operating information from last month is as follows:
Variable costs per unit:
Direct materials $17.50
Direct labor $5.33
Manufacturing overhead $2.50
Selling & administrative $125.00
Total variable costs per unit $150.33
Monthly Fixed costs:
Manufacturing overhead $27,500
Selling & administrative $173,500
Total fixed costs $201,000
Units in beginning inventory 0
Units produced 7,350
Units sold 7,243
Units in ending inventory 107
Under absorption costing, what is the unit product cost for one premium pink ping pong ball?