Direct material cost is $5.00 per unit; direct labour is $6.00 per unit; variable overhead is $2.50 per unit; fixed overhead is $1.00 per unit; administration salaries are $7.00 per unit; and advertising amounts to $4.00 per unit. What is the total variable cost per unit?

Question

Quizplus · Accepted Answer

Variable cost per unit = direct material cost per unit + direct labor cost per unit + variable overhead cost per unit
= $5.00 + $6.00 + $2.50
= $13.50
Therefore, the total variable cost per unit is $13.50, which is option A.

Direct Material Cost Is $5