Josh’s Manufacturing Company reported fixed manufacturing overhead of $2,500,000, and 2,600,000 total units. The variable manufacturing costs were $1.50 per unit. What is the cost per unit using absorption costing?

$0.54

Explanation:

Given: Fixed manufacturing overhead = $2500000.

           Total number of unit= 2600000.

            The variable manufacturing costs= $1.50 per unit.

First finding the cost per unit of manufacturing overhead.

Cost per unit of manufacturing overhead=

⇒ Cost per unit of manufacturing overhead=

∴ Cost per unit of manufacturing overhead= $0.96154

Next finding the cost per units using absorption costing.

Cost per unit= ⇒ Cost per unit=

∴ Cost per unit=

Hence, $0.54 is the cost per unit using absorption costing.

this business is a price setter.

hope this

answer; read and consider the content of the items;