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?

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.