Aaker Company, which has only one product, has provided the following data conce

Question

Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price (per unit) $99 Units in beginning inventory Units produced Units sold Units in ending inventory 0 6,300 6,000 300 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling & administration $12 $42 $6 $6 Fixed costs: Fixed manufacturing overhead Fixed selling & admin $170,100 $24,000 What is the unit product cost for the month under variable costing? o a. $60 o b. $93 O C. $87 O d. $66

Explanation / Answer

Answer:

Unit product cost under variable costing =$60

Working notes for the above answer

Calculation for the Unit product cost under variable costing is as under

Amount in $

Direct material

12

Direct Labor

42

Variable manufacturing
overhead

6

Unit product cost under variable costing

60

Amount in $

Direct material

12

Direct Labor

42

Variable manufacturing
overhead

6

Unit product cost under variable costing

60

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