Blackbird, Incorporated reports the following information regarding its production cost:Units produced39,000 unitsDirect labor$13 per unitDirect materials$17 per unitVariable overhead$200 per unitFixed overhead$9,750,000 in totala. Compute production cost per unit under variable costing.b. Compute production cost per unit under absorption costing.
What will be an ideal response?
a. $13 DL + $17 DM + $200 VOH = $230 per unit under variable costing
b. $230 + ($9,750,000/39,000) FOH = $480 per unit under absorption costing
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