McMillan, Inc Calculate the Unit Product Cost Using Absorption Costing When Production

question 109

Essay

McMillan, Inc. has the following cost data:
$$\begin{array} { | l | r | l | } \hline \text { Direct materials } & \$ 38 & \text { per unit } \\\hline \text { Direct labor } & 52 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & 15 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & 10,000 & \text { per year } \\\hline\end{array}$$ Calculate the unit product cost using absorption costing when production is 200 units, 400 units, and 800 units.

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