Compute the total production cost per unit

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Question: Under absorption costing, a company had the following unit costs when 9,000 units were produced.

Direct labor $7.25 per unit

Direct material $8.00 per unit

Variable overhead $5.50 per unit

Fixed overhead ($67,500/9,000 units) $7.50 per unit

Total production cost $28.25 per unit

Compute the total production cost per unit under variable costing if 30,000 units had been produced.

Reference no: EM131922078

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