Gloria's Decorating produces and sells a mantel clock for $100 per unit. In 2015, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:
$\begin{array}{ll}
\text { Direct materials } & \$ 40.00 \text { per unit } \
\text { Direct manufacturing labor } & \$ 5.00 \text { per unit } \
\text { Variable manufacturing costs } & \$ 7.50 \text { per unit } \
\text { Sales commissions } & \$ 12.50 \text { per part } \
\text { Fixed manufacturing costs } & \$ 62.50 \text { per unit } \
\text { Administrative expenses all fixed } & \$ 37.50 \text { per unit }
\end{array}$
-What is the inventoriable cost per unit using variable costing?
A) $45.00
B) $52.50
C) $65.00
D) $115.00

Question

Gloria's Decorating produces and sells a mantel clock for $100 per unit. In 2015, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:
 $\begin{array}{ll}
\text { Direct materials } & \$ 40.00 \text { per unit } \
\text { Direct manufacturing labor } & \$ 5.00 \text { per unit } \
\text { Variable manufacturing costs } & \$ 7.50 \text { per unit } \
\text { Sales commissions } & \$ 12.50 \text { per part } \
\text { Fixed manufacturing costs } & \$ 62.50 \text { per unit } \
\text { Administrative expenses all fixed } & \$ 37.50 \text { per unit }
\end{array}$
-What is the inventoriable cost per unit using variable costing?
A) $45.00
B) $52.50
C) $65.00
D) $115.00

Quizplus · Accepted Answer

The inventoriable cost per unit using variable costing includes only variable costs: Direct materials ($40.00), Direct manufacturing labor ($5.00), and Variable manufacturing costs ($7.50), totaling $52.50 per unit.

Gloria's Decorating Produces and Sells a Mantel Clock for $100