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13 April, 00:07

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 119 Units in beginning inventory 0 Units produced 6,550 Units sold 6,250 Units in ending inventory 300 Variable costs per unit: Direct materials $ 17 Direct labor $ 47 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 176,850 Fixed selling and administrative expense $ 25,500 What is the unit product cost for the month under variable costing?

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  1. 13 April, 00:31
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    Unitary product cost = $75

    Explanation:

    Giving the following information:

    Direct materials $ 17

    Direct labor $ 47

    Variable manufacturing overhead $ 11

    Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and variable unitary overhead:

    Unitary product cost = 17 + 47 + 11 = $75
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