Given the Following Data, Total Product Cost Per Unit Under

question 163

True/False

Given the following data, total product cost per unit under absorption costing will be greater than total product cost per unit under variable costing.
$$\begin{array} { | l | c | } \hline \text { Direct labor } & \$ 9 \text { per unit } \\\hline \text { Direct rmaterials } & \$ 7 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 45,000 \\\hline \text { Total fixed overhead } & \$ 27,000 \\\hline & \\\hline \text { Expected urits to be produced } & 9,000 \text { units } \\\hline\end{array}$$

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Definitions:

Reprocessing

The act of processing used or discarded materials to make them suitable for reuse, often involving cleaning, repairing, or transforming them into new products.

Ultimate Consumers

The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.

Organizational Buyers

Entities such as businesses, governments, and institutions that purchase goods and services for organizational purposes.

Not-for-Profit Organizations

Organizations that operate for purposes other than making a profit, typically focusing on social, educational, charitable, or cultural objectives.