Why might a manager of a company using absorption costing


Under absorption costing a company had the following per unit costs when 10.000 units were produced.

direct labor $2.
direct material $3
variable overhead $4
TOTAL VARIABLE COST $9
fixed overhead(50,000/10,000 units)$5
TOTAL PRODUCTION COST PER UNIT $14

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?

Solution Preview :

Prepared by a verified Expert
Financial Accounting: Why might a manager of a company using absorption costing
Reference No:- TGS0777018

Now Priced at $30 (50% Discount)

Recommended (96%)

Rated (4.8/5)