(Appendix 5A)Phoeuk 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 costs.During its first year of operations, the company produced 41, 000 units and sold 40, 000 units.The company's only product is sold for $231 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A)$88 per unit
B)$110 per unit
C)$209 per unit
D)$166 per unit

Question

(Appendix 5A)Phoeuk 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 costs.During its first year of operations, the company produced 41, 000 units and sold 40, 000 units.The company's only product is sold for $231 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A)$88 per unit 
B)$110 per unit 
C)$209 per unit 
D)$166 per unit

Quizplus · Accepted Answer

The Answer is B

(Appendix 5A)Phoeuk Corporation Manufactures and Sells One Product