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Sandrino company produced 70,000 units last year. The company sold 67,600 units and there was no beginning inventory.

The company chose practical activity at 70,000 units to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct material $612,500.00
Direct labor $105,000.00
Variable overhead $79,100.00
Fixed overhead $269,500.00

find out the cost of one unit of product under absorption costing.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M940186

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