Asked by Evelyn Domingo on May 09, 2024
Verified
Under variable costing, the unit product cost is:
A) $24 per unit
B) $20 per unit
C) $18 per unit
D) $21 per unit
Variable Costing
A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.
- Determine the cost per unit using both variable and absorption costing techniques.
Verified Answer
AE
Amber EveryMay 14, 2024
Final Answer :
C
Explanation :
Unit product cost under variable costing: 
Reference: CHO7-Ref6
Columbia Corporation produces a single product.The company's variable costing income statement for November appears below:
During November, 35,000 units were manufactured and 8,000 units were in beginning inventory.Variable production costs have remained constant on a per unit basis over the past several months.
Reference: CHO7-Ref6Columbia Corporation produces a single product.The company's variable costing income statement for November appears below:
During November, 35,000 units were manufactured and 8,000 units were in beginning inventory.Variable production costs have remained constant on a per unit basis over the past several months.
Learning Objectives
- Determine the cost per unit using both variable and absorption costing techniques.