Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced 4,100
Variable costs per unit: Direct materials $90
Direct labor $42
Variable manufacturing overhead $3
Variable selling and administrative expense $10

Fixed costs:
Fixed manufacturing overhead $135,300
Fixed selling and administrative expense $287,000

There were no beginning or ending inventories. The absorption costing unit product cost was:

Unitary product cost= $168 per unit

Explanation:

Giving the following information:

Number of units produced 4,100

Variable costs per unit:

Direct materials $90

Direct labor $42

Variable manufacturing overhead $3

Fixed costs:

Fixed manufacturing overhead $135,300

Under the absorption costing method, the unitary product cost is calculated using the direct material, direct labor, and total unitary overhad.

Unitary product cost= direct material + direct labor + unitary variable overhead + unitary fixed overhead

Unitary product cost= 90 + 42 + 3 + (135,300/4,100)= $168 per unit

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1: b     the use of non-standard grammar

2: c     strong and willful.

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