Answer:
correct option is (B) $94.50
Explanation:
given data
Units produced = 46,000 units
Direct labor = $39 per unit
Direct materials = $32 per unit
Variable overhead = $21 per unit
Fixed overhead = $115,000
to find out
product cost per unit under absorption costing
solution
we find Fixed overhead that is
fixed overhead = [tex]\frac{115000}{46000}[/tex]
fixed overhead = 2.5
so
total cost that is
total cost = Direct labor + Direct materials + Variable overhead + Fixed overhead
product cost = $39 + $32 + $21 + $2.5
product cost = $94.50
so correct option is (B) $94.50
