Wyatt Corporation Wyatt Corporation has the following standard costs associated with the manufacture and sale of one of its products:

Direct material $3.00 per unit

Direct labor 2.50 per unit

Variable manufacturing overhead 1.80 per unit

Fixed manufacturing overhead 4.00 per unit (based on an estimate of 50,000 units per year)

Variable selling expenses .25 per unit

Fixed SG&A expense $75,000 per year

During its first year of operations Wyattmanufactured 51,000 units and sold 48,000 . The selling price per unit was $ \$ 25 $. All costswere equal to standard. Refer to Wyatt Corporation.Under absorption costing,the standard production cost per unit for the current year was

Question

Wyatt Corporation Wyatt Corporation has the following standard costs associated with the manufacture and sale of one of its products:

Direct material	$3.00 per unit
Direct labor	2.50 per unit
Variable manufacturing overhead	1.80 per unit
Fixed manufacturing overhead	4.00 per unit (based on an estimate of 50,000 units per year)
Variable selling expenses	.25 per unit
Fixed SG&A expense	$75,000 per year

During its first year of operations Wyattmanufactured 51,000 units and sold 48,000 . The selling price per unit was $ \$ 25 $. All costswere equal to standard. Refer to Wyatt Corporation.Under absorption costing,the standard production cost per unit for the current year was

Quizplus · Accepted Answer

Under absorption costing, the standard production cost per unit includes all manufacturing costs, both fixed and variable. Therefore, the standard production cost per unit for the current year is:
Direct materials + Direct labor + Manufacturing overhead = $2.50 + $4.00 + $4.80 = $11.30 per unit.

Wyatt Corporation Wyatt Corporation Has the Following Standard Costs Associated $25 \$ 25 $25

Wyatt Corporation
Wyatt Corporation Has the Following Standard Costs Associated $\$ 25$