Given the Following Data, Total Product Cost Per Unit Under

question 50

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:

Transfer

The act of moving data, energy, or materials from one location, system, or medium to another.

Word

In computing, a fixed-sized piece of data handled as a unit by the instruction set or hardware of the processor.

Register

A small, fast storage location within a CPU, used for holding instructions, addresses, or data that is being processed or manipulated.