Wyatt Corporation Wyatt Corporation has the following standard costs associated with the manufacture and sale of one of its products:

Direct material $3.00 per unit

Direct labor 2.50 per unit

Variable manufacturing overhead 1.80 per unit

Fixed manufacturing overhead 4.00 per unit (based on an estimate of 50,000 units per year)

Variable selling expenses .25 per unit

Fixed SG&A expense $75,000 per year

During its first year of operations Wyatt manufactured 51,000 units and sold 48,000. The selling price per unit was $25. All costs were equal to standard. Refer to Wyatt Corporation.Under variable costing,the standard production cost per unit for the current year was A)$11.30. B)$7.30. C)$7.55. D)$11.55.

Question

Wyatt Corporation Wyatt Corporation has the following standard costs associated with the manufacture and sale of one of its products:

Direct material	$3.00 per unit
Direct labor	2.50 per unit
Variable manufacturing overhead	1.80 per unit
Fixed manufacturing overhead	4.00 per unit (based on an estimate of 50,000 units per year)
Variable selling expenses	.25 per unit
Fixed SG&A expense	$75,000 per year

During its first year of operations Wyatt manufactured 51,000 units and sold 48,000. The selling price per unit was $25. All costs were equal to standard. Refer to Wyatt Corporation.Under variable costing,the standard production cost per unit for the current year was A)$11.30. B)$7.30. C)$7.55. D)$11.55.

Quizplus · Accepted Answer

Variable costing only includes direct variable costs in the cost of goods sold, which for this scenario is $3.00 for materials and $4.30 for labor, totaling $7.30 per unit. The fixed manufacturing overhead and selling and administrative costs are treated as period expenses and not included in the cost of goods sold under variable costing.

Wyatt Corporation Wyatt Corporation Has the Following Standard Costs Associated with the with the Manufacture