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Under absorption costing, a company had the following per unit costs when 20,000 units were produced. Direct materials $ 4.40 Direct labor 3.40 Variable overhead 5.40 Fixed overhead ($50,000/20,000 units) 2.50 Total product cost per unit $ 15.70 1. Compute total product cost per unit under absorption costing if instead 25,000 units are produced. Total fixed overhead remains at $50,000. 2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute total product cost per unit under absorption costing if instead 25,000 units are produced. Total fixed overhead remains at $50,000. (Round your answers to 2 decimal places.) Absorption costing Per unit Product cost per unit $ 0.00 < Required 1 Required 2 >
Under absorption costing, a company had the following per unit costs when 20,000 units were produced. Direct materials $ 4.40 Direct labor 3.40 Variable overhead 5.40 Fixed overhead ($50,000/20,000 units) 2.50 Total product cost per unit $ 15.70 1. Compute total product cost per unit under absorption costing if instead 25,000 units are produced. Total fixed overhead remains at $50,000. 2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease? If units produced is greater than units sold, cost of goods sold under absorption costing will < Required 1 Required 2