Respuesta :
Answer:
A : $28.25 is the total production cost per unit under Absorption Costing.
Explanation:
The absorption costing method is a costing method that is applied in evaluating inventory which not only covers the cost of materials and labor but including both variable and fixed manufacturing overhead costs also.
Under the absorption costing, the unit product cost is calculated as follows:
Total production cost per unit = Direct materials + Direct labor + Variable overhead + Fixed manufacturing overhead allocated
Total production cost per unit = 8.00 + 7.25 + 5.50 + 7.50
= $28.25
$28.25 is the total production cost per unit under Absorption Costing.
