Beamish Incorporated, 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

Direct labor

Variable manufacturing overhead

$ 149

$ 112

$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:

O $261 per unit

O $303 per unit

O $268 per unit

O $390 per unit

To determine the absorption costing unit product cost, we need to include both variable and fixed manufacturing costs per unit. Here's the breakdown of the absorption costing calculation:

1. **Variable manufacturing costs per unit**:
   - Direct materials: $149
   - Direct labor: $112
   - Variable manufacturing overhead: $7
   - **Total variable manufacturing cost per unit** = $149 + $112 + $7 = $268

2. **Fixed manufacturing overhead per unit**:
   - Total fixed manufacturing overhead: $301,000
   - Since there were 8,600 units produced, the fixed manufacturing overhead cost per unit is:
     \[
     \frac{301,000}{8,600} = 35
     \]

3. **Absorption costing unit product cost**:
   - Add the variable manufacturing costs and the fixed manufacturing overhead per unit:
     \[
     268 + 35 = 303
     \]

### Answer:
The absorption costing unit product cost is **$303 per unit**.

**Correct answer**: **$303 per unit**

Would you like more details on how absorption costing works or have any questions?

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Here are five additional questions to deepen your understanding:

1. How does absorption costing differ from variable costing?
2. Why is fixed manufacturing overhead allocated per unit in absorption costing?
3. How would the unit cost change if production increased or decreased?
4. What impact would beginning or ending inventories have on unit cost calculations?
5. How do selling and administrative expenses factor into costing?

**Tip:** In absorption costing, fixed manufacturing overhead is spread across units produced, which can reduce per-unit costs as production volume increases.

Beamish Incorporated, 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: O $261 per unit, O $303 per unit, O $268 per unit, O $390 per unit

Understand how to calculate the absorption costing unit product cost for Beamish Incorporated's recent production of 8,600 units. This problem covers key concepts in costing, including variable and fixed cost allocation and absorption costing. Ideal for Grades 10-12.

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