Cockriel Inc., which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. The variable costing unit product cost was:
A)$42
B)$43
C)$37
D)$48

Question

Cockriel Inc., which produces a single product, has provided the following data for its most recent month of operations:  There were no beginning or ending inventories. The variable costing unit product cost was:
A)$42 
B)$43 
C)$37 
D)$48

Quizplus · Accepted Answer

Variable costing unit product cost = Total Variable Costs ÷ Total Units Produced 
Total Variable Costs = Direct Materials + Direct Labor + Variable Manufacturing Overhead 
= $54,600 + $35,200 + $12,000 
= $101,800 
Total Units Produced = Units Sold 
= 2,600 
Variable costing unit product cost = $101,800 ÷ 2,600 = $39.15, which rounds up to $37 (closest answer choice).