A manufacturing company that produces a single product has provided the followin

Question

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 21,000 Units sold 18,100 Units in ending inventory 2,900 Variable costs per unit: Direct materials $53.00 Direct labor $44.50 Variable manufacturing overhead $6.50 Variable selling and administrative $23.00 Fixed costs: Fixed manufacturing overhead $84,000 Fixed selling and administrative $103,900 What is the variable costing unit product cost for the month?

Explanation / Answer

Hi, Please find the answer as follows: Variable Costing Product Cost = (53 + 44.5 + 6.5 + 23)*18100 = 2298700 Thanks.

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