Aaron Corporation, which has only one product, has provided the following data c

Question

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 90 Units in beginning inventory 0 Units produced 3,400 Units sold 3,000 Units in ending inventory 400 Variable costs per unit: Direct materials $ 21 Direct labor $ 38 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $ 54,400 Fixed selling and administrative expense $ 3,000 What is the unit product cost for the month under variable costing?

A. $69 per unit

B. $65 per unit

C. $85 per unit

D. $81 per unit

Explanation / Answer

unit product cost for the month under variable costing=Direct materials+Direct labor+ Variable manufacturing overhead

which is equal to

=(21+38+6)

which is equal to

=$65 per unit(B).

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