ACCTB Ch. 19 Test 12. Given the following data, calculate the total product cost per unit under variable costing Direct labor Direct materials Overhead $3.50 per unit $1.25 per unit Total variable overhead Total fixed overhead $41,400 $150,000 Expected units to be produced 18,000 units A. $4.75 per unit B. $7.05 per unit C. $15.38 per unit D. $13.08 per unit E. $16 per unit 13. Swisher, Incorporated reports the following annual cost data for its single product Normal production level Direct materials Direct labor Variable overhead Fixed overhead 30,000 units $6.40 per unit $3.93 per unit $5.80 per unit $150,000 in total This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing? A. $60,000 decrease B. $90,000 decrease. C. There is no change in gross margin D. $90,000 increase. E. $60,000 increase. 14. Front Company had net income of $72,500 based on variable costing. Beginning and ending inventories were 800 units and 1,200 units, respectively. Assume the fixed $7.90 A. overhead per unit for both the beginning and ending inventory. What is net income under absorption costing? $69,340 $75,660 $88,300 $56,700 E. $72,900 B. C. D