Under Absorption Costing,a Company Had the Following Unit Costs When

question 21

True/False

Under absorption costing,a company had the following unit costs when 10,000 units were produced:
$\begin{array}{ll}\text { Direct labor } & \$ 2 \text { per unit } \\\text { Direct material } & \$ 3 \text { per unit } \\\text { Variable overhead } & \$ 4 \text { per unit } \\\cline { 2 - 2 } \text { Total variable } & \$ 9 \text { per unit } \\\text { Fixed overhead }(\$ 50,000 / 10,000 \text { units) } & \$ 5 \text { per unit } \\\text { Total production cost } & \$ 14 \text { per unit }\end{array}$

The total production cost per unit under absorption costing if 25,000 units had been produced would be $11.

---

Definitions:

Binet's Legacy

Refers to the enduring contributions of Alfred Binet, particularly in the field of intelligence testing and psychology, including the development of the first practical intelligence test.

Psychological Study

Research aimed at understanding human thought, emotion, and behavior through systematic observation, measurement, and analysis.

Stereotype Threat

The risk of confirming negative stereotypes about one's social group, which can hinder performance.

Disadvantaged Groups

Populations that suffer from economic, societal, or educational deficiencies compared to the general community.