Question

Vintage Company has provided the following details. Calculate the product cost per unit using the variable costing method. Please round your answers to two decimal places. Include relevant components such as direct materials, direct labor, variable manufacturing overhead, and any other applicable costs in the computation of the product cost per unit.

Answer 1

To calculate the product cost per unit using the variable costing method, consider the components of direct materials, direct labor, variable manufacturing overhead, and other applicable costs. Calculate the total variable cost and divide it by the total number of units produced to get the average variable cost per unit.

Step-by-step explanation:

To calculate the product cost per unit using the variable costing method, we need to consider the components of direct materials, direct labor, variable manufacturing overhead, and any other applicable costs. Here are the steps:

1. Calculate the total variable cost by summing up the direct materials, direct labor, and variable manufacturing overhead.
2. Divide the total variable cost by the total number of units produced to get the average variable cost per unit.

For example, if Vintage Company had a total variable cost of $10,000 and produced 1,000 units, the average variable cost per unit would be $10,000 / 1,000 = $10.