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The following costs relate to Tower Company: Variable manufacturing cost, $36; variable selling and administrative cost, $14; applied fixed manufacturing overhead, $21; and allocated fixed selling and administrative cost, $10. If Tower uses absorption manufacturing-cost pricing formulas, the company's markup percentage would be computed on the basis of:

Respuesta :

Answer:

$71

Explanation:

The computation of cost per unit using absorption costing is given below:-

Manufacturing cost per unit = Variable manufacturing cost + Fixed manufacturing overhead

= $43 + $28

= $71

Therefore for computing the manufacturing cost per unit we simply added the variable manufacturing cost with fixed manufacturing overhead and rest cost are not relevant for manufacturing cost per unit.

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