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Hayes Inc. provided the following information for the current year: Beginning inventory 270units Units produced 920units Units sold 980units Selling price$320/unit Direct materials$52/unit Direct labor$33/unit Variable manufacturing overhead$32/unit Fixed manufacturing overhead$45,080/year Variable selling/administrative costs$25/unit Fixed selling/administrative costs$32,500/year What is the unit product cost for the year using absorption costing

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ayokenny2001

Answer:

$163

Explanation:

Given the above information, the unit product cost using absorption costing is computed as;

= Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead per unit

= $52 + $33 + $32 + ($45,080/980)

= $117 + $46

= $163

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