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Production Cost Per Unit using Absorption Costing

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Reject Corporation reports the following information regarding its production costs.

Compute its production cost per unit under absorption costing.

Direct Materials............ $10 per unit
Direct Labor................... $20 per unit

Overhead costs for the year

Variable overhead........ $10 per unit

Fixed overhead.............. $ 160,000

units produced................... 20,000 units

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Solution Summary

Your computations and tutorial remarks are in the attached Excel file.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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