(Appendix 6A) Tremble 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 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
-The unit product cost under super-variable costing is:
A) $180 per unit
B) $105 per unit
C) $94 per unit
D) $210 per unit

Question

(Appendix 6A) Tremble 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 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
-The unit product cost under super-variable costing is:
A) $180 per unit 
B) $105 per unit 
C) $94 per unit 
D) $210 per unit

Quizplus · Accepted Answer

Under super-variable costing, the unit product cost is just the direct materials cost of $94 per unit.

(Appendix 6A) Tremble Corporation Manufactures and Sells One Product