Given the Following Data, Total Product Cost Per Unit Under

question 10

True/False

Given the following data, total product cost per unit under absorption costing is $9.14.
$$\begin{array} { | l | c | } \hline \text { Direct labor } & \mathbf { \$ 0 . 7 2 p e r ~ u n i t ~ } \\\hline \text { Direct rmaterials } & \mathbf { \$ 0 . 8 0 p e r ~ u n i t } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 202,500 \\\hline \text { Total fixed overhead } & \$ 140,400 \\\hline & \\\hline \text { Expected urits to be produced } & 45,000 \text { units } \\\hline\end{array}$$

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Definitions:

Capital Expenditures Budget

A budget detailing the planned investments in fixed assets, such as machinery, equipment, or buildings, intended to benefit the company over a long period.

Master Budget

A comprehensive financial plan made up of several smaller, specific budgets that detail a company's projections for future periods.

Long-Term Financial Plans

Strategies and financial goals set by a business or individual for a period extending beyond one year.

Budgets

Financial plans that outline expected revenues and expenditures for a specific period of time.