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Answer the Following Questions Using the Information Below:
Leongatha Motors

question 217

Multiple Choice

Answer the following questions using the information below:
Leongatha Motors produces and sells an auto part for $30.00 per unit.In 2018,100 000 parts were produced and 75 000 units were sold.Other information for the year includes:
 Direct materials $12.00 per unit  Direct manufacturing labour $2.25 per unit  Variable manufacturing costs $0.75 per urit  Sales commissions $3.00 per part  Fixed manufacturing costs $375000 per year  Administrative expenses, all fixed $135000 per year \begin{array}{lc}\text { Direct materials } & \$ 12.00 \text { per unit } \\\text { Direct manufacturing labour } & \$ 2.25 \text { per unit } \\\text { Variable manufacturing costs } & \$ 0.75 \text { per urit } \\\text { Sales commissions } & \$ 3.00 \text { per part } \\\text { Fixed manufacturing costs } & \$ 375000 \text { per year } \\\text { Administrative expenses, all fixed } & \$ 135000 \text { per year }\end{array}
-What is the inventoriable cost per unit using absorption costing?

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