Answered

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Direct materials $40,000 Direct labor 31,000 Fixed manufacturing overhead 22,000 Variable manufacturing overhead 38,000 Fixed selling and administrative expenses 23,000 Variable selling and administrative expenses 14,000 What are the total product costs for the company under absorption costing

Sagot :

facundobuzzetti

Answer:

Total product costs= $131,000

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

In this case, the total product cost:

Total product costs= 40,000 + 31,000 + 22,000 + 38,000

Total product costs= $131,000

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