(Appendix 6A) 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 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
-Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A) $181 per unit
B) $117 per unit
C) $94 per unit
D) $215 per unit

Question

(Appendix 6A) 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 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
-Assume that the company uses a variable costing system that assigns $23 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A) $181 per unit 
B) $117 per unit 
C) $94 per unit 
D) $215 per unit

Quizplus · Accepted Answer

11ea7761_184e_ed1a_81a5_25fb54735743_TB2580_00

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