Under absorption costing, a company had the following per unit costs when 5,000 units were produced.
Direct materials $ 5.80
Direct labor 4.80
Variable overhead 6.80
Fixed overhead ($60,000/5,000 units) 12.00
Total product cost per unit $ 29.40
1. Compute total product cost per unit under absorption costing if instead 6,000 units are produced. Total fixed overhead remains at $60,000.
2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute total product cost per unit under absorption costing if instead 6,000 units are produced. Total fixed overhead remains at $60,000.
Note: Round your answers to 2 decimal places.