Asked by loveneet singh on May 02, 2024
Verified
What is the unit product cost for the year using variable costing?
A) $98
B) $66
C) $74
D) $96
E) $95
Variable Costing
A costing method that includes only variable costs (costs that change with production volume) in product costs and treats fixed costs as period costs.
Unit Product Cost
The total cost assigned to a single unit of product, encompassing direct materials, direct labor, and manufacturing overhead.
- Familiarize oneself with the procedures for estimating costs via variable costing.
Verified Answer
CS
Chanon SmitthakornMay 07, 2024
Final Answer :
B
Explanation :
The unit product cost for the year using variable costing can be calculated as follows:
Unit Product Cost = Variable Manufacturing Cost per Unit + Variable Selling and Administrative Cost per Unit
Unit Product Cost = ($44 + $12) + ($10 + $0)
Unit Product Cost = $66
Therefore, the best choice is B.
Unit Product Cost = Variable Manufacturing Cost per Unit + Variable Selling and Administrative Cost per Unit
Unit Product Cost = ($44 + $12) + ($10 + $0)
Unit Product Cost = $66
Therefore, the best choice is B.
Learning Objectives
- Familiarize oneself with the procedures for estimating costs via variable costing.