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

Quizplus · Accepted Answer

The unit product cost includes direct materials, direct labor, and variable overhead. Since the direct labor cost per unit is given as $22, we need to add this amount to the direct materials cost and variable overhead cost to calculate the unit product cost. However, the direct materials cost and variable overhead cost are not given in the question. Therefore, we cannot calculate the unit product cost accurately. However, we can eliminate choices A, C, and D since they are not equal to $22 plus the unknown direct materials cost and variable overhead cost. The only choice that remains is B, which is the best answer based on the given information.

Assume That the Company Uses a Variable Costing System That