Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 61,000 units and sold 58,900 units. The company's only product is sold for $250 per unit.Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:
A) $196 per unit
B) $126 per unit
C) $111 per unit
D) $263 per unit

Question

Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 61,000 units and sold 58,900 units. The company's only product is sold for $250 per unit.Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:
A) $196 per unit 
B) $126 per unit 
C) $111 per unit 
D) $263 per unit

Quizplus · Accepted Answer

The Answer of Labadie Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 61,000 units and sold 58,900 units. The company's only product is sold for $250 per unit.Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced. The unit product cost under this costing system is:
A) $196 per unit 
B) $126 per unit 
C) $111 per unit 
D) $263 per unit

Labadie Corporation Manufactures and Sells One Product