To calculate the unit product cost under absorption costing, we need to account for both the variable manufacturing costs and the allocated fixed manufacturing overhead.

Step-by-Step Calculation

1. Calculate Total Variable Manufacturing Cost per Unit

   • Direct materials: $18
   • Direct labor: $10
   • Variable manufacturing overhead: $4

   Total Variable Manufacturing Cost per Unit = $18 + $10 + $4 = $32

2. Calculate Fixed Manufacturing Overhead per Unit

   • Fixed manufacturing overhead = $255,200
   • Units produced = 8,800

   Fixed Manufacturing Overhead per Unit = $255,200 / 8,800 = $29

3. Calculate Unit Product Cost under Absorption Costing Absorption costing includes both variable manufacturing costs and fixed manufacturing overhead.

   $\text{Unit Product Cost} = \text{Total Variable Manufacturing Cost per Unit} + \text{Fixed Manufacturing Overhead per Unit}$ $= 32 + 29 = 61$

Conclusion

The unit product cost for the month under absorption costing is $61 per unit.

Answer

The correct answer is: $61 per unit

Would you like more details or have any questions?

Related Questions

1. How would the unit product cost change if the fixed manufacturing overhead increased?
2. What would the unit product cost be under variable costing?
3. How does absorption costing differ from variable costing in terms of fixed overhead treatment?
4. What is the impact of ending inventory on absorption costing profit?
5. How would selling and administrative expenses impact the overall net profit?

Tip: Absorption costing spreads fixed manufacturing costs across all units produced, which can affect inventory valuation and profit when inventory levels change.