Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories.
What is the unit product cost using absorption costing?
A. $50 per unit

B. $55 per unit

C. $70 per unit

D. $90 per unit

Answer rating: 100% (QA)

Compute the unit product cost using absorption costing as follows Therefore option c is t... View the full answer