Given the Following Data, Total Product Cost Per Unit Under

question 101

True/False

Given the following data, total product cost per unit under absorption costing is $11.40.
$$\begin{array} { | l | c | } \hline \text { Direct labor } & \$ 5 \text { per unit } \\\hline \text { Direct rmaterials } & \$ 6 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 32,800 \\\hline \text { Total fixed overhead } & \$ 164,000 \\\hline & \\\hline \text { Expected urits to be produced } & \mathbf { 8 2 , 0 0 0 u ni t s } \\\hline\end{array}$$

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Definitions:

Average Run Length

In statistical process control, it is the expected number of samples taken until a control chart signals a possible shift in process parameters.

Control Chart

A tool used in process control to monitor, control, and identify the stability of a process over time.

Process

A series of actions or steps taken in order to achieve a particular end.

Statistical Process Control

A method used to monitor, control, and ensure the quality of processes by using statistical methods.