Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced		3,700
Variable costs per unit:
Direct materials	$	131
Direct labor	$	65
Variable manufacturing overhead	$	12
Variable selling and administrative expense	$	16
Fixed costs:
Fixed manufacturing overhead	$	118,400
Fixed selling and administrative expense	$	288,600

There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

• $208 per unit
• $334 per unit
• $196 per unit
• $240 per unit

  Correct

Explanation

Direct materials	$	131
Direct labor		65
Variable manufacturing overhead		12
Fixed manufacturing overhead cost ($118,400 ÷ 3,700 units)		32
Absorption costing unit product cost	$	240