Bakker Corporation has provided the following production and average cost data for two levels of monthly production volume.The company produces a single product. $\begin{array}{lrr}
\text {Production volume }&4,000 \text { units } & 5,000 \text { units } \
\text {Direct materials }&\$ 89.70 \text { per unit } & \$ 89.70 \text { per unit } \
\text {Direct labor }&\$ 22.60 \text { per unit } & \$ 22.60 \text { per unit } \
\text { Manufacturing overhead}&\$ 70.50 \text { per unit } & \$ 60.30 \text { per unit }
\end{array}$ The best estimate of the total variable manufacturing cost per unit is:
A)$89.70
B)$131.80
C)$19.50
D)$112.30

Question

Quizplus · Accepted Answer

The variable manufacturing cost per unit is the sum of the direct materials cost per unit and the direct labor cost per unit. In this case, the direct materials cost per unit is $89.70 and the direct labor cost per unit is $22.60. Therefore, the total variable manufacturing cost per unit is $89.70 + $22.60 = $112.30.

Bakker Corporation Has Provided the Following Production and Average Cost