Allentown Aqua,Inc What Is the Unit Product Cost Using Variable Costing?
A)$55

Allentown Aqua,Inc.has provided the following information for the year. $$\begin{array} { | l | r | r|} \hline \text { Units produced } & 11,000 &\text { units } \\\hline \text { Sales price } & \$ 400 &\text { per unit } \\\hline \text { Direct materials } & \$ 20 &\text { per unit } \\\hline \text { Direct labor } & \$ 35& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 70& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 470,000& \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 90& \text { per unit } \\\hline \text { Fixed selling and administration costs } & \$ 240,000 &\text { per year } \\\hline\end{array}$$ What is the unit product cost using variable costing?

A) $55
B) $105
C) $125
D) $168