Bateman Corporation, which has only one product, has provided the following data

Question

Bateman Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$117

Units in beginning inventory

0

Units produced

4,700

Units sold

4,400

Units in ending inventory

300

Variable costs per unit:

    Direct materials

$36

    Direct labor

$38

    Variable manufacturing overhead

$4

    Variable selling and administrative

$11

Fixed costs:

    Fixed manufacturing overhead

$89,300

    Fixed selling and administrative

$26,400

What is the unit product cost for the month under variable costing?

$89 per unit

$97 per unit

$108 per unit

$78 per unit

  

Selling price

$117

Units in beginning inventory

0

Units produced

4,700

Units sold

4,400

Units in ending inventory

300

Variable costs per unit:

    Direct materials

$36

    Direct labor

$38

    Variable manufacturing overhead

$4

    Variable selling and administrative

$11

Fixed costs:

    Fixed manufacturing overhead

$89,300

    Fixed selling and administrative

$26,400

Explanation / Answer

Ans: d. $78 per unit

Explanation:

Variable Costing:

Direct Materials

$36

Direct Labor

$38

Variable manufacturing overhead

$4

Unit Product Cost

$78 per unit

Variable Costing:

Direct Materials

$36

Direct Labor

$38

Variable manufacturing overhead

$4

Unit Product Cost

$78 per unit

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