#21. Wumpus Limited, LLC, has but one product. Last year Wumpus manufactured 24,000 units and sold 22,600 units. Production costs were as follows: Sales totaled $474,600. Variable selling and administrative expenses were $117,520. Fixed selling and administrative expenses were $38,400. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the unit product cost would be: $9.10 $16.90 $14.30 $11.70 Direct material $100,800 Direct labor $57,600 Variable manufacturing overhead $60,000 Fixed manufacturing overhead $62,400 Solution Ans: Total - $2,80,800 Total Production - 24000 units Cost per unit - 280800/24000 = 11.70. Note: Neither fixed not variable selling & distribution cost is taken into consideration while calculating the cost per unit under absorption costing as these expenses are taken to arrive at the cost of sales.Direct material $100,800 Direct labor $57,600 Variable manufacturing overhead $60,000 Fixed manufacturing overhead $62,400.