Yaltz Inc. produces and sells lamp shades. It is currently planning to launch a

Question

Yaltz Inc. produces and sells lamp shades. It is currently planning to launch a new children's line. The following are the projected costs based on a projected units sold of 111,000. Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses $11.20 $12.60 $8.20 $5.25 Annual fixed costs and expenses: Manufacturing overhead Selling and administrative expenses $327,450 $1.95 Yaltz Inc. will invest $1,041,500 for this new launch and would like to earn a $10 per unit return on its investment. ? (a) Calculate the total cost per unit using variable costing. (Round answer to 2 decimal places, e.g. 15.25.) Total cost per unit

Explanation / Answer

The unit product cost under variable costing would be Direct Material 11.2 Direct labor 12.6 Variable manufacturing overhead 8.2 Variable costing unit product cost 32

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