Given the following data, total product cost per unit under absorption costing will be greater than total product cost per unit under variable costing.Direct labor$9per unitDirect materials$7per unitOverhead Total variable overhead$45,000 Total fixed overhead$27,000 Expected units to be produced 9,000units
Answer the following statement true (T) or false (F)
True
Variable costing: $9 DL + $7 DM + ($45,000/9,000 units) VOH = $21
Absorption costing: $9 DL + $7 DM + ($45,000/9,000 units) VOH + ($27,000/9,000 units) FOH = $24
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