Under Absorption Costing,a Company Had the Following Unit Costs When

True/False

Under absorption costing,a company had the following unit costs when 10,000 units were produced:
$\begin{array}{ll}\text { Direct labor } & \$ 2 \text { per unit } \\\text { Direct material } & \$ 3 \text { per unit } \\\text { Variable overhead } & \$ 4 \text { per unit } \\\cline { 2 - 2 } \text { Total variable } & \$ 9 \text { per unit } \\\text { Fixed overhead }(\$ 50,000 / 10,000 \text { units) } & \$ 5 \text { per unit } \\\text { Total production cost } & \$ 14 \text { per unit }\end{array}$

The total production cost per unit under absorption costing if 25,000 units had been produced would be $11.