Penny's Pies,Inc.has provided the following financial information for the year:

What is the unit product cost for the year using variable costing?

Question

Penny's Pies,Inc.has provided the following financial information for the year:

What is the unit product cost for the year using variable costing?

Quizplus · Accepted Answer

The unit product cost using variable costing can be calculated as follows:
Variable Manufacturing Cost per unit = Direct Materials + Direct Labor + Variable Manufacturing Overhead
= $18 + $6 + $26
= $50
Hence, the correct answer is option C. 
Option A is incorrect because $62 is the unit product cost using absorption costing. 
Option B is incorrect because it does not take into account the variable manufacturing overhead. 
Option D is incorrect because it is not a feasible option based on the information provided.