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6 February, 11:34

Hayes Inc. provided the following information for the current year: Beginning inventory 190 units Units produced 840 units Units sold 890 units Selling price $ 240 / unit Direct materials $ 44 / unit Direct labor $ 25 / unit Variable manufacturing overhead $ 24 / unit Fixed manufacturing overhead $ 34,440 / year Variable selling/administrative costs $ 17 / unit Fixed selling/administrative costs $ 24,500 / year What is the unit product cost for the year using variable costing?

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  1. 6 February, 12:03
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    Unitary product cost = $93

    Explanation:

    Giving the following information:

    Direct materials = $44

    Direct labor = $25

    Variable manufacturing overhead = $24

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

    Unitary product cost = 44 + 25 + 24 = $93
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