Use the following information for items
Obama Company sells its product for $25 per unit.During 2020, it produced 20,000 units and sold 15,000 units (there was no beginning inventory).Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3.Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses.
-The per-unit manufacturing cost under variable costing is
A)$12.
B)$27.
C)$29.50.
D)$32.

Question

Use the following information for items 
Obama Company sells its product for $25 per unit.During 2020, it produced 20,000 units and sold 15,000 units (there was no beginning inventory).Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3.Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses.
-The per-unit manufacturing cost under variable costing is
A)$12.
B)$27.
C)$29.50.
D)$32.

Quizplus · Accepted Answer

The Answer is A

Use the Following Information for Items