Under absorption costing, STEPHCO had the following unit costs when 8,000 units were produced. ...
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Accounting
Under absorption costing, STEPHCO 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 20,000 units had been produced.
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