Question

Doon Company incurred the following costs while producing 610 ​units: direct​ materials, $ 7 per​ unit; direct​ labor, $ 26 per​ unit; variable manufacturing​ overhead, $ 18 per​ unit; total fixed manufacturing overhead​ costs, $ 15 comma 250​; variable selling and administrative​ costs, $ 4 per​ unit; total fixed selling and administrative​ costs, $ 9 comma 150. There are no beginning inventories. What is the unit product cost using variable​ costing?

A. $ 55 per unit
B. $ 51 per unit
C. $ 76 per unit
D. $ 95 per unit

Answer 1

B. $ 51 per unit

Step-by-step explanation:

The computation of the unit product cost using variable​ costing is shown below:

= Direct material per unit + direct labor per unit + variable manufacturing​ overhead per unit

= $7 units + $26 + $18

= $51 per unit

It recognizes only variable cost like - direct material, direct labor, and variable manufacturing cost. Hence, all other information is ignored