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

ID: 2486576 • Letter: A

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:



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

Question options:

$94 per unit

$115 per unit

$90 per unit

$111 per unit

Units in beginning inventory 0 Units produced 4,000 Units sold 3,900 Units in ending inventory 100 Variable costs per unit:     Direct materials $41     Direct labor $43     Variable manufacturing overhead $6     Variable selling and administrative $4 Fixed costs:     Fixed manufacturing overhead $84,000     Fixed selling and administrative $39,000

Explanation / Answer

unit product cost for the month=($90*4,000+84,000)/4,000=$111 per unit

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