Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 5,000 Units sold 4,900 Units in ending inventory 100 Variable costs per unit: Direct materials$61 Direct labor$63 Variable manufacturing overhead$26 Variable selling and administrative expense$24 Fixed costs: Fixed manufacturing overhead$105,000 Fixed selling and administrative expense$49,000 What is the variable costing unit product cost for the month

Answer 1

$217,600

Step-by-step explanation:

Calculation for the variable costing unit product cost for the month

Variable selling and administrative expense $117,600

($24 per unit x 4,900 units sold)

Fixed manufacturing overhead $105,000

Fixed selling and administrative expense$49,000

Variable costing total period $217,600

($117,600+$105,000+$49,000)

Therefore the variable costing unit product cost for the month is $217,600