Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 8,600 Variable costs per unit: Direct materials $ 149 Direct labor $ 112 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 301,000 Fixed selling and administrative expense $ 653,600 There were no beginning or ending inventories. The absorption costing unit product cost was:

$303

Explanation:

The computation of the absorption costing unit product cost is shown below:

= Direct materials per unit + Direct labor per unit + variable manufacturing overhead  per unit + Fixed manufacturing overhead per unit

= $149 + $112 + $7 + $35

= $303

Working note:

The Fixed manufacturing overhead per unit is measured below:

= Fixed manufacturing overhead ÷ Number of units produced

= $301,000 ÷ $8,600 units

= $35

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