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Under absorption costing, a company had the following unit costs when 8,000 units were produced....

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Accounting

Under absorption costing, a company had the following unit costs when 8,000 units were produced.

Direct labor $8.50 per unit Direct material $9.00 per unit Variable overhead $6.75 per unit Fixed overhead ($60,000/8,000 units) $7.50 per unit Total production cost $31.75 per unit

Compute the total production cost per unit under variable costing if 25,000 units had been produced. $31.75 $27.25 $26.25 $24.25 $17.50

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