Given the Following Data,total Product Cost Per Unit Under Variable

question 29

True/False

Given the following data,total product cost per unit under variable costing will be greater than total product cost under absorption costing.
$\begin{array}{|l|l|}\hline \text { Direct labor } & \$ 2 \text { per unit } \\\hline \text { Direct materials } & \$ 8 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 37,500 \\\hline \text { Total fixed overhead } & \$ 249,000 \\\hline & \\\hline \text { Expected units to be produced } & 15,000 \text { units } \\\hline\end{array}$

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Definitions:

Rate of inflation

The percentage increase in the general price level of goods and services in an economy over a period of time.

Purchasing power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Compounded monthly

A method where interest is calculated on the principal and any accumulated interest each month, effectively increasing the amount on which future interest is earned.

Deferral period

A span of time during which payments, obligations, or other actions are postponed or delayed.