Assume a Company Had the Following Production Costs Under Absorption Costing, the Total Production Cost Per Unit When

True/False

Assume a company had the following production costs:
$\begin{array}{ll} \text { Direect labor } &\$ 20,000 \\ \text { Direct material } &\$ 30,000 \\ \text { Variable overhead } &\$ 40,000 \\ \text { Fixed overhead } &\$ 50,000\end{array}$ Under absorption costing, the total production cost per unit when 4,000 units are produced would be $22.50.