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Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun's operations for last year: Unit product cost under variable costing $ 5.20 per unit Fixed manufacturing overhead cost for the year $ 260,000 Fixed selling and administrative expense for the year $ 180,000 Units (calculators) produced and sold 400,000 What is Shun's absorption costing unit product cost for last year

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abiolataiwo2015

Answer:

$5.85

Explanation:

Calculation for Shun's absorption costing unit product cost for last year

Absorption costing unit product cost =$5.20+ (260,000/400,000)

Absorption costing unit product cost =5.20+ 0.65

Absorption costing unit product cost =$5.85

Therefore the absorption costing unit product cost for last year is $5.85

Absorption cost is a managerial accounting approach that covers both variable and fixed overhead costs associated with the production of a specific product. Shun's absorption costing unit product cost is $5.85.

What is absorption costing unit product cost for last year?

Shun's absorption costing unit product cost calculation for the previous year is shown below.

[tex]\text{Absorption costing unit product cost} = 5.20+ (\frac{260,000}{400,000} )\\\\\text{Absorption costing unit product cost} = 5.20+ 0.65\\\\\text{Absorption costing unit product cost} = 5.85[/tex]

As a result, the cost of absorption costing unit product last year was $5.85.

For more information about absorption costing, refer below

https://brainly.com/question/26276034

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