Monroe Corporation produced 20,000 units during the last period. The company incurred the following total costs to produce these units.
$\begin{array}{lr}
\text { Direct materials } & \$ 240,000 \
\text { Direct labor } & 160,000 \
\text { Variable overhead } & 80,000 \
\text { Fixed overhead } & 120,000
\end{array}$
Required:

a. Under the absorption costing method, what is the average unit product cost?

b. Under the variable costing method, what is the average unit product cost?

Question

Monroe Corporation produced 20,000 units during the last period. The company incurred the following total costs to produce these units. 
$\begin{array}{lr}
\text { Direct materials } & \$ 240,000 \
\text { Direct labor } & 160,000 \
\text { Variable overhead } & 80,000 \
\text { Fixed overhead } & 120,000
\end{array}$
Required:

a.	Under the absorption costing method, what is the average unit product cost?

b.	Under the variable costing method, what is the average unit product cost?

Quizplus · Accepted Answer

The Answer of Monroe Corporation produced 20,000 units during the last period. The company incurred the following total costs to produce these units. 
$\begin{array}{lr}
\text { Direct materials } & \$ 240,000 \
\text { Direct labor } & 160,000 \
\text { Variable overhead } & 80,000 \
\text { Fixed overhead } & 120,000
\end{array}$
Required:

a.	Under the absorption costing method, what is the average unit product cost?

b.	Under the variable costing method, what is the average unit product cost?

Monroe Corporation Produced 20,000 Units During the Last Period Required: A

Monroe Corporation Produced 20,000 Units During the Last Period Required:

A