Date Company
Date Company makes calendars. Information on cost per unit is as follows: $$\begin{array} { l l }
\text { Direct materials } & \$ 1.50 \
\text { Direct labour } & \$ 1.20 \
\text { Variable overhead } & \$ 0.90 \
\text { Variable marketing expense } & \$ 0.40
\end{array}$$ Fixed marketing expense totalled $13,000, and fixed administrative expense totalled $35,000. The sales price per calendar is $10.
-Refer to Date Company. What is the variable cost per unit?
A) $1.30
B) $3.70
C) $4.00
D) $4.60

Question

Date Company
Date Company makes calendars. Information on cost per unit is as follows: $$\begin{array} { l l } 
\text { Direct materials } & \$ 1.50 \
\text { Direct labour } & \$ 1.20 \
\text { Variable overhead } & \$ 0.90 \
\text { Variable marketing expense } & \$ 0.40
\end{array}$$ Fixed marketing expense totalled $13,000, and fixed administrative expense totalled $35,000. The sales price per calendar is $10.
-Refer to Date Company. What is the variable cost per unit?
A) $1.30
B) $3.70
C) $4.00
D) $4.60

Quizplus · Accepted Answer

The variable cost per unit is the sum of direct materials, direct labour, variable overhead, and variable marketing expense: $1.50 + $1.20 + $0.90 + $0.40 = $4.00.

Date Company Date Company Makes Calendars Fixed Marketing Expense Totalled $13,000, and Fixed Administrative Expense Totalled

Date Company
Date Company Makes Calendars Fixed Marketing Expense Totalled $13,000, and Fixed Administrative Expense Totalled