Doon Company incurred the following costs while producing 610 units: direct materials, $ 7 per unit; direct labor, $ 26 per unit; variable manufacturing overhead, $ 18 per unit; total fixed manufacturing overhead costs, $ 15 comma 250 ; variable selling and administrative costs, $ 4 per unit; total fixed selling and administrative costs, $ 9 comma 150. There are no beginning inventories. What is the unit product cost using variable costing?

A. $ 55 per unit

B. $ 51 per unit

C. $ 76 per unit

D. $ 95 per unit

Question

Alonzo Boyle

Business

16 December, 01:25

Doon Company incurred the following costs while producing 610 units: direct materials, $ 7 per unit; direct labor, $ 26 per unit; variable manufacturing overhead, $ 18 per unit; total fixed manufacturing overhead costs, $ 15 comma 250 ; variable selling and administrative costs, $ 4 per unit; total fixed selling and administrative costs, $ 9 comma 150. There are no beginning inventories. What is the unit product cost using variable costing?

A. $ 55 per unit

B. $ 51 per unit

C. $ 76 per unit

D. $ 95 per unit

+4

Answers (1)

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Chump · Answer 1

B. $ 51 per unit

Explanation:

The computation of the unit product cost using variable costing is shown below:

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit

= $7 units + $26 + $18

= $51 per unit

It recognizes only variable cost like - direct material, direct labor, and variable manufacturing cost. Hence, all other information is ignored