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Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 7,000 Variable costs per unit: Direct materials $ 149 Direct labor $ 98 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 16 Fixed costs: Fixed manufacturing overhead $ 245,000 Fixed selling and administrative expense $ 483,000 There were no beginning or ending inventories. The absorption costing unit product cost was:

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Answer:

$288

Explanation:

Absorption costing:

Direct materials..........................................$149

Direct labour....................................................98

Variable manufacturing overhead...............6

Total variable production cost.................253

Fixed manufacturing overhead ($

245,000/7,000 units of product). 35

Unit product cost.....................................$288

Therefore The absorption costing unit product cost was: $288

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