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

question 80

True/False

Given the following data,total product cost per unit under absorption costing will be $400 greater than total product cost per unit under variable costing.
$\begin{array}{|l|c|}\hline \text { Direct labor } & \$ 1.50 \text { per unit } \\\hline \text { Direct materials } & \$ 1.50 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 900,000 \\\hline \text { Total fixed overhead } & \$ 1,200,000 \\\hline & \\\hline \text { Expected units to be produced } & 3,000 \text { units } \\\hline\end{array}$

---

Definitions:

Unsecured

Pertaining to loans or debts that are not backed by collateral, making them riskier for lenders.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but is based on the issuer's creditworthiness and reputation.

Risk Premium

The additional return over the risk-free rate that an investment is expected to yield, compensating investors for taking on higher risk.

Default Risk

The risk of loss arising from a debtor failing to make required payments on their debt obligation.