Allentown Aqua,Inc.has provided the following information for the year. $$\begin{array} { | l | r | }
\hline \text { Units produced } & 9,000 \text { units } \
\hline \text { Sales price } & \$ 600 \text { per unit } \
\hline \text { Direct materials } & \$ 25 \text { per unit } \
\hline \text { Direct labor } & \$ 30 \text { per unit } \
\hline \text { Variable manufacturing overhead } & \$ 50 \text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 440,000 \text { per year } \
\hline \text { Variable selling and administration costs } & \$ 75 \text { per unit } \
\hline \text { Fixed selling and administration costs } & \$ 240,000 \text { per year } \
\hline
\end{array}$$ What is the unit product cost using variable costing?
A) $55
B) $80
C) $105
D) $154

Question

Allentown Aqua,Inc.has provided the following information for the year. $$\begin{array} { | l | r | } 
\hline \text { Units produced } & 9,000 \text { units } \
\hline \text { Sales price } & \$ 600 \text { per unit } \
\hline \text { Direct materials } & \$ 25 \text { per unit } \
\hline \text { Direct labor } & \$ 30 \text { per unit } \
\hline \text { Variable manufacturing overhead } & \$ 50 \text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 440,000 \text { per year } \
\hline \text { Variable selling and administration costs } & \$ 75 \text { per unit } \
\hline \text { Fixed selling and administration costs } & \$ 240,000 \text { per year } \
\hline
\end{array}$$ What is the unit product cost using variable costing?
A) $55
B) $80
C) $105
D) $154

Quizplus · Accepted Answer

Variable costing includes all variable production costs in the unit product cost. This includes direct materials ($25), direct labor ($30), and variable manufacturing overhead ($50), totaling $105 per unit.

Allentown Aqua,Inc What Is the Unit Product Cost Using Variable Costing? A)

Allentown Aqua,Inc What Is the Unit Product Cost Using Variable Costing?
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