Home Base, Inc A Compute Production Cost Per Unit Under Variable Costing

Home Base, Inc. reports the following production cost information:
$$\begin{array} { | l | l | } \hline \text { Units produced } & 97,000 \text { units } \\\hline \text { Units sold } & 92,000 \text { units } \\\hline \text { Direct labor } & \$ 17 \text { per unit } \\\hline \text { Direct materials } & \$ 34 \text { per unit } \\\hline \text { Variable overhead } & \$ 26 \text { per unit } \\\hline \text { Fixed overhead } & \$ 1,940,000 \text { in total } \\\hline\end{array}$$ a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine the cost of ending inventory using variable costing.
d. Determine the cost of ending inventory using absorption costing.

Correct Answer:

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a. $17 DL + $34 DM + $26 VOH = $77 per u...

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