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11 April, 07:16

MC Qu. 86 Urban Company reports the following ... Urban Company reports the following information regarding its production cost: Units produced 36,000 units Direct labor $ 29 per unit Direct materials $ 34 per unit Variable overhead $ 236,000 in total Fixed overhead $ 126,000 in total Compute production cost per unit under variable costing.

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  1. 11 April, 07:34
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    Production cost per unit (under variable cost) = $69.55

    Explanation:

    Given:

    Total unit produced = 36,000

    Direct labor = $29 per unit

    Direct material = $34 per unit

    Variable overhead = $236,000

    Total Fixed overhead = $126,000

    Computation:

    Variable Overhead per unit = $236,000 / 36,000 = $6.55

    Production cost per unit (under variable cost) = Direct Labor per unit + Direct material per unit + Direct Variable Overhead per unit

    Production cost per unit (under variable cost) = $29 + $34 + $6.55

    Production cost per unit (under variable cost) = $69.55
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