Nevada Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r }
\text { Direct materials used } & \$ 200,000 \
\text { Direct labor } & 80,000 \
\text { Fixed overhead } & 180,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 30,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 127 \\
\text { Units produced and sold } & 10,000 \
\end{array}$$ _____ is the manufacturing cost per unit if the contribution approach is used.
A)$28
B)$31
C)$36
D)$40

Question

Nevada Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r } 
\text { Direct materials used } & \$ 200,000 \
\text { Direct labor } & 80,000 \
\text { Fixed overhead } & 180,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 30,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 127 \\
\text { Units produced and sold } & 10,000 \
\end{array}$$ _____ is the manufacturing cost per unit if the contribution approach is used.
A)$28
B)$31
C)$36
D)$40

Quizplus · Accepted Answer

The Answer of Nevada Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r } 
\text { Direct materials used } & \$ 200,000 \
\text { Direct labor } & 80,000 \
\text { Fixed overhead } & 180,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 30,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 127 \\
\text { Units produced and sold } & 10,000 \
\end{array}$$ _____ is the manufacturing cost per unit if the contribution approach is used.
A)$28
B)$31
C)$36
D)$40

Nevada Company Provided the Following Information Regarding Its Only Product--Skateboards