Sea Company reports the following information regarding its production cost.
$\begin{array}{ll}
\text { Units produced } & 42,000 \text { units } \
\text { Direct labor } & \$ 35 \text { per unit } \
\text { Direct materials } & \$ 28 \text { per unit } \
\text { Variable overhead } & \$ 17 \text { per unit } \
\text { Fixed overhead } & \$ 105,000 \text { in total }
\end{array}$

Compute production cost per unit under variable costing.
A) $28.00
B) $82.50
C) $80.00
D) $63.00
E) $35.00

Question

Sea Company reports the following information regarding its production cost.
$\begin{array}{ll}
\text { Units produced } & 42,000 \text { units } \
\text { Direct labor } & \$ 35 \text { per unit } \
\text { Direct materials } & \$ 28 \text { per unit } \
\text { Variable overhead } & \$ 17 \text { per unit } \
\text { Fixed overhead } & \$ 105,000 \text { in total }
\end{array}$

Compute production cost per unit under variable costing.
A) $28.00
B) $82.50
C) $80.00
D) $63.00
E) $35.00

Quizplus · Accepted Answer

The Answer of Sea Company reports the following information regarding its production cost.
$\begin{array}{ll}
\text { Units produced } & 42,000 \text { units } \
\text { Direct labor } & \$ 35 \text { per unit } \
\text { Direct materials } & \$ 28 \text { per unit } \
\text { Variable overhead } & \$ 17 \text { per unit } \
\text { Fixed overhead } & \$ 105,000 \text { in total }
\end{array}$

Compute production cost per unit under variable costing.
A) $28.00
B) $82.50
C) $80.00
D) $63.00
E) $35.00

Sea Company Reports the Following Information Regarding Its Production Cost