Use the following information for the next 4 questions.
Shipp, Inc. budgets the following costs for a normal monthly volume of 500 units selling for $4,000 each.
-The product cost per unit using variable costing is
A) $1,600
B) $2,800
C) $2,000
D) $2,400

Question

Use the following information for the next 4 questions.
Shipp, Inc. budgets the following costs for a normal monthly volume of 500 units selling for $4,000 each. 
-The product cost per unit using variable costing is
A) $1,600 
B) $2,800 
C) $2,000 
D) $2,400

Quizplus · Accepted Answer

Variable costing includes only variable manufacturing costs in the product cost. In this case, the variable manufacturing costs are $1,600 per unit.

Use the Following Information for the Next 4 Questions