Under Absorption Costing, a Company Had the Following Unit Costs

question 59

Multiple Choice

Under absorption costing, a company had the following unit costs when 9,000 units were produced. Compute the total product cost per unit under variable costing if 30,000 units had been produced.

• A) $31.75
• B) $28.25
• C) $23.45
• D) $15.25
• E) $20.75

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Definitions:

Cerebral

Pertaining to the brain or intellect.

Birthrates

The number of live births per 1,000 people in a population over a given period of time.

Cohorts

Groups of people banded together or treated as a group, often referred to in research or demographics studies.

Social Security

A government program designed to provide financial assistance to people with little or no income, especially the elderly, disabled, and unemployed.