Date Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totalled $13,000, and fixed administrative expense totalled $35,000. The price per calendar is $10.
$\begin{array}{lr}
\text { Direct materials } & \$ 1.50 \
\text { Direct labour } & 1.20 \
\text { Variable overhead } & 0.90 \
\text { Variable marketing expense } & 0.40
\end{array}$
-Refer to the Figure.What is the variable product expense per unit?
A)$1.30
B)$3.60
C)$4.00
D)$4.60

Question

Date Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totalled $13,000, and fixed administrative expense totalled $35,000. The price per calendar is $10.
 $\begin{array}{lr}
\text { Direct materials } & \$ 1.50 \
\text { Direct labour } & 1.20 \
\text { Variable overhead } & 0.90 \
\text { Variable marketing expense } & 0.40
\end{array}$
-Refer to the Figure.What is the variable product expense per unit?
A)$1.30
B)$3.60
C)$4.00
D)$4.60

Quizplus · Accepted Answer

Variable product expense per unit includes direct materials, direct labor, and variable overhead, which sum up to $1.50 + $1.20 + $0.90 = $3.60. Variable marketing expense is not included in product costs.

Date Company Makes Calendars -Refer to the Figure