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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Under absorption costing, a company had the following unit costs when 10,500 units were produced.
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| Â Â Direct labor | $ 9.75 per unit |
| Â Â Direct material | $ 10.25 per unit |
| Â Â Variable overhead | $ 8.00 per unit |
| Â Â Fixed overhead ($105,000 / 10,500 units) |
$ 10.00 per unit |
| Â Â Â Â Â Total production cost |
$ 38.00 per unit |
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Compute the total production cost per unit under variable costing if 35,000 units had been produced.
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