Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory0Units produced4,650Units sold4,550Units in ending inventory100Variable costs per unit: Direct materials$ 54Direct labor$ 56Variable manufacturing overhead$ 19Variable selling and administrative expense$ 17Fixed costs: Fixed manufacturing overhead$97,650Fixed selling and administrative expense$45,500 What is the variable costing unit product cost for the month?

Answer 1

The variable costing unit product cost for the month is $146 that we found out after calculation.

Step-by-step explanation:

To calculate the variable costing unit product cost for the month, we need to add up the variable costs per unit for direct materials, direct labor, variable manufacturing overhead, and variable selling and administrative expense.

Variable costs per unit:

Direct materials: $54

Direct labor: $56

Variable manufacturing overhead: $19

Variable selling and administrative expense: $17

Total variable costs per unit:

$54 + $56 + $19 + $17 = $146

Therefore, the variable costing unit product cost for the month is $146.