Question

How do you calculate Unit & Total Product cost under variable and absorption methods?

How do you calculate Unit & Total Product cost under variable and absorption methods?

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Answer #1

the cost per unit is direct materials, direct labor, variable overhead, and fixed overhead. In this case, fixed overhead per unit is calculatedby dividing total fixed overhead by the number of unitsproduced (& calculate unit product cost for managerial accounting purposes, follow these steps: Sum the total direct labor, direct materials and manufacturing overhead incurred during the period. Subtract fixed manufacturing overhead costs. Divide thetotal from Step 2 by the number of units manufactured during the period.

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