old proffesor mullen\'s gourmet food company sells its product for $60 per unit.

Question

old proffesor mullen's gourmet food company sells its product for $60 per unit. during 2015, ... Question: Old Proffesor Mullen's Gourmet Food Company sells its product for $60 per unit. During 2015, it p... media%2F782%2F782e55f0-972f-458d-9639-e3 Old Proffesor Mullen's Gourmet Food Company sells its product for $60 per unit. During 2015, it produced 60,000 units and sold 50,000 units (there was no beginning inventory or BI=0). Costs per unit are: direct materials (DM) $15, direct labor (DL) $9, and variable overhead (VOH) $3. Fixed costs are: $720,000 (FOH) manufacturing overhead, and $90,000 (S&A) selling and administrative expenses.. the per unit (product ) manufacturing cost under variable costing (V/C) is

Explanation / Answer

UNIT COST UNDER VARIABLE COSTING Material Cost per unit 15 Labour cost per unit 9 Variable manufacturing OH 3 Unit Manufacturing Cost 27 Unit Cost under variable Costing: $27 per unit Note: Fixed manufacturing will not be cocnsidered for manufacturing cost under variable cossting.

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