Under absorption costing a company had the following per unit costs when 10.000 units were produced.compute the company's total production cost per unit if 25,000 units had been produced.why might a manager of a company using absorption costing produce more units then can currently be sold?
- direct labor $2.
- direct material $3
- variable overhead $4
- TOTAL VARIABLE COST $9
- fixed overhead(50,000/10,000 units)$5