Use the Following Information for Items

question 33

Multiple Choice

Use the following information for items
Obama Company sells its product for $25 per unit.During 2020, it produced 20,000 units and sold 15,000 units (there was no beginning inventory) .Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3.Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses.
-The per-unit manufacturing cost under absorption costing is

• A)$12.
• B)$27.
• C)$29.50.
• D)$32.

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Definitions:

Customer Service Department

A division within a company that handles inquiries, supports customers post-purchase, and resolves any issues or complaints.

Capacity Analysis

The assessment of the production capabilities of a business to determine how efficiently it can meet its production targets.

Time-Driven Activity-Based Costing

Time-driven activity-based costing is an approach to costing that assigns resource costs directly to products or services based on the actual time spent on activities, improving accuracy and simplifying the costing process.

Customer Service Department

A division of a business dedicated to addressing customer inquiries, complaints, and providing assistance.