Under absorption costing, a company had the following unit costs when 10,000 units were produced:Direct labor$2per unitDirect material$3per unitVariable overhead$4per unitTotal variable$9per unitFixed overhead ($50,000/10,000 units)$5per unitTotal production cost$14per unit The total product cost per unit under absorption costing if 25,000 units had been produced would be $11.
Answer the following statement true (T) or false (F)
True
$2 DL + $3 DM + $4 VOH + ($50,000/25,000) FOH = $11
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