##### absorption costing - manufacturing cost per unit

 Accounting Tutor: None Selected Time limit: 1 Day

calculate Polk’s manufacturing cost per unit for 2012. Selling Price - \$27. Sold 80,000 Produced 94,900

 Variable Cost per Unit Direct materials \$8.10 Direct labor \$2.65 Variable manufacturing overhead \$6.21 Variable selling and administrative expenses \$4.21 Fixed Costs per Year Fixed manufacturing overhead \$253,383 Fixed selling and administrative expenses \$259,308
Jun 24th, 2015

Thank you for the opportunity to help you with your question!

Total variable cost per unit = \$8.10 + \$2.65 + \$6.21 + \$ 4.21 = \$21.17

Fixed manufacturing overhead per unit = \$253383 / 94,900 = \$2.67

Total manufacturing cost per unit = \$21.17 + \$2.67 = \$23.84

Fixed selling and administrative expenses per unit = \$259308 / 80000 = \$3.214

Total cost per unit = \$27.08

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 24th, 2015

Thanks so much!! I really appreciate it. However, I input the number, but it said incorrect... Do we add Variable selling and administrative expenses for VC?

Jun 24th, 2015

I should have not added variable selling and admin expense for VC, it was a mistake. Variable selling expense will get added for total cost though.

Jun 24th, 2015

OMG!! Thanks so much!! I got this one finally right!! Thanks!! I'll rate you right now for appreciation. Thanks!! :)

Jun 24th, 2015

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Jun 24th, 2015
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Jun 24th, 2015
May 29th, 2017
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