A manufacturing company that produces a single product

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units in beginning inventory 0, Units produced 6,500, Units sold 6,300, Units in ending inventory 200. Variable costs per unit direct materials $26, direct labor $55, variable manufacturing overhead $6, variable selling and administrative $7. Fixed costs fixed manufacturing overhead $130,000, fixed selling and administrative $69,300.
What is the absorption costing unit product cost for the month?

Selected: a. $107 This answer is correct.
b. $94
c. $87
d. $114

Correct! Unit fixed manufacturing overhead equals $130,000 divided by 6,500 equals $20. Unit product cost equals direct materials $26 plus direct labor $55 plus variable manufacturing overhead cost $6 plus fixed manufacturing overhead cost $20 totals $107.