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Given the Following Data, Total Product Cost Per Unit Under

Question 50

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Given the following data, total product cost per unit under variable costing will be greater than total product cost under absorption costing.
 Direct labor $2 per unit  Direct materials $8 per unit  Overhead  Total variable overhead $37,500 Total fixed overhead $249,000 Expected units to be produced 15,000 units \begin{array} { | l | l | } \hline \text { Direct labor } & \$ 2 \text { per unit } \\\hline \text { Direct materials } & \$ 8 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 37,500 \\\hline \text { Total fixed overhead } & \$ 249,000 \\\hline & \\\hline \text { Expected units to be produced } & 15,000 \text { units } \\\hline\end{array}

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