Use the following information for the next 7 questions.
Brady, Inc. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
-The variable product cost per unit was
A) $4.90
B) $5.15
C) $4.00
D) $4.25

Question

Use the following information for the next 7 questions.
Brady, Inc. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred:  The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
-The variable product cost per unit was
A) $4.90 
B) $5.15 
C) $4.00 
D) $4.25

Quizplus · Accepted Answer

The correct choice is $4.90, which is the given variable product cost per unit.

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