Geovanni Turner

Business

3 July, 20:05

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $92

Units in beginning inventory 0

Units produced 8,700

Units sold 8,300

Units ending inventory 400

Variable costs per unit:

Direct materials $13

Direct labor $55

Variable manufacturing overhead $1

Variable selling and administrative $5

Fixed costs:

Fixed manufacturing overhead $130,500

Fixed selling and administrative $8,300

What is the unit product cost for the month under absorption costing?

a) $74 per unit

b) $89 per unit

c) $69 per unit

d) $84 per unit