Reference no: EM132596114
In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year.
Units production ..........................................30,000
Unit direct materials ........................................$9.95
Unit direct labor .............................................$2.75
Unit variable overhead .....................................$1.65
Unit fixed overhead* .......................................$2.50
Unit selling expense (variable) ...........................$2.00
Total fixed selling expense .............................$65,500
Total fixed administrative expense ..................$231,000
The unit fixed overhead is based on 30,000 units produced.
Question 1. Calculate the cost of one unit of product under absorption costing.