Ramos Company has the following unit costs:
$\begin{array}{llr}
\text { Variable manufacturing overhead } &\$13\
\text { Direct materials } &12\
\text { Direct labor} &17\
\text { Fixed manufacturing overhead} &10\
\text { Fixed marketing and administrative }&8
\end{array}$

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What cost per unit would be used for product costs under full absorption costing?
A) $29
B) $42
C) $52
D) $60

Question

Ramos Company has the following unit costs:
$\begin{array}{llr}
  \text { Variable manufacturing overhead } &\$13\
 \text { Direct materials } &12\
 \text {  Direct labor} &17\
 \text {  Fixed manufacturing overhead} &10\
\text { Fixed marketing and administrative }&8
\end{array}$

-
What cost per unit would be used for product costs under full absorption costing?
A) $29
B) $42
C) $52
D) $60

Quizplus · Accepted Answer

Under full absorption costing, product costs include all manufacturing costs: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. Therefore, the cost per unit is $12 + $17 + $13 + $10 = $52.

Ramos Company Has the Following Unit Costs - What Cost Per Unit Would Be Used for Product

Ramos Company Has the Following Unit Costs -
What Cost Per Unit Would Be Used for Product