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Given the Following Data, Total Product Cost Per Unit Under

question 122

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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.
 Direct labor $1.50 per unit  Direct materials $1.50 per unit  Overhead  Total variable overhead $900,000 Total fixed overhead $1,200,000 Expected units to be produced 3,000 units \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}

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