Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,400 Variable costs per unit: Direct materials $ 104 Direct labor $ 86 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 14 Fixed costs: Fixed manufacturing overhead $ 199,800 Fixed selling and administrative expense $ 394,200 There were no beginning or ending inventories. The absorption costing unit product cost was:

$238

Explanation:

Given that,

Number of units produced = 5,400

Variable costs per unit:

Direct materials = $ 104

Direct labor = $ 86

Variable manufacturing overhead = $ 11

Variable selling and administrative expense = $ 14

Fixed costs:

Fixed manufacturing overhead = $ 199,800

Fixed selling and administrative expense = $ 394,200

Fixed manufacturing overhead cost:

= Fixed manufacturing overhead ÷ Number of units produced

= $ 199,800 ÷ 5,400

= $37 per unit

Absorption costing unit product cost:

= Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead cost

= $104 + $86 + $11 + $37

= $238

Therefore, the absorption costing unit product cost was $238.

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