The Unit Product Cost Under Absorption Costing Is

question 125

Multiple Choice

The unit product cost under absorption costing is:

• A)$231 per unit
• B)$103 per unit
• C)$133 per unit
• D)$102 per unit

---

Definitions:

Direct Labor

Direct labor relates to the work of employees who are directly involved in the production of goods or services.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent, property taxes, and insurance.

Variances

The differences between planned or expected financial outcomes and the actual financial outcomes.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.