Answer:
$82.5 per unit
Explanation:
Given that,
Units produced = 42,000 units
Direct labor = $35 per unit
Direct materials = $28 per unit
Variable overhead = $17 per unit
Total Fixed overhead = $105,000
Product cost per unit under absorption costing:
= Direct labor + Direct materials + variable overhead per unit + (Total fixed overhead ÷ Units produced)
= $35 + $28 + $17 + ($105,000 ÷ 42,000)
= $35 + $28 + $17 + $2.5
= $82.5 per unit