Answer:
c. $229
Explanation:
To compute the total absorption cost per unit we do the following,
Absorption of fixed costs = Fixed costs / units produced
Absorption cost = 200,000 / 4000 = $50/unit
Total cost of each individual unit = 99 + 55 + 25 + 50 = $229
This includes direct material, direct labor, manufacturing overhead and the fixed absorption cost.
With absorption costing we take all the goods produced in a period as denominator for the Fixed costs.
Hope that helps.
