MC Qu. 88 Hayes Inc. provided the following information ... Hayes Inc. provided the following information for the current year: Beginning inventory 210 units Units produced 860 units Units sold 913 units Selling price $ 260 / unit Direct materials $ 46 / unit Direct labor $ 27 / unit Variable manufacturing overhead $ 26 / unit Fixed manufacturing overhead $ 36,980 / yr Variable selling/administrative costs $ 19 / unit Fixed selling/administrative costs $ 26,500 / yr What is the unit product cost for the year using variable costing

Unit Product Cost=$99

Explanation:

Given dа ta:

Beginning inventory=210 units

Units produced = 860 units

Units sold=913 units

Selling price per unit = $ 260

Direct materials per unit = $46

Direct labor = $ 27 / unit

Variable manufacturing overhead per unit=$ 26

Fixed manufacturing overhead = $ 36,980 / yr

Variable selling/administrative costs = $ 19 / unit

Fixed selling/administrative costs = $ 26,500 / yr

Required:

the unit product cost for the year using variable costing=?

Solution:

According to variable costing unit product cost is the sum of direct labor, Direct material and Variable manufacturing overhead per unit.

Unit Product Cost=Direct materials per unit+Direct labor per unit+Variable manufacturing overhead per unit

Unit Product Cost=$46++$27+$27

Unit Product Cost=$99