A company produces a single product for which the following cost data are available. Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs. What is the marginal cost per unit?
A) $6
B) $7
C) $8
D) $9

Question

A company produces a single product for which the following cost data are available.  Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs. What is the marginal cost per unit?
A) $6 
B) $7 
C) $8 
D) $9

Quizplus · Accepted Answer

The Answer of A company produces a single product for which the following cost data are available.  Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs. What is the marginal cost per unit?
A) $6 
B) $7 
C) $8 
D) $9

A Company Produces a Single Product for Which the Following