QS 18-17B Computing unit cost under absorption costing LO P5 Vijay Company reports the following information regarding its production costs. Direct materials $ 10.20 per unit Direct labor $ 20.20 per unit Overhead costs for the year Variable overhead $ 10.20 per unit Fixed overhead $ 180,400 Units produced 22,000 units Compute its product cost per unit under absorption costing. (Round your fin

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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