Question

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 123 Units in beginning inventory 0 Units produced 6,600 Units sold 6,300 Units in ending inventory 300 Variable costs per unit: Direct materials $ 18 Direct labor $ 48 Variable manufacturing overhead $ 12 Variable selling and administrative expense $ 12 Fixed costs: Fixed manufacturing overhead $ 178,200 Fixed selling and administrative expense $ 25,800 What is the unit product cost for the month under variable costing?

Answer 1

Unitary variable production cost= $78

Step-by-step explanation:

Giving the following information:

Variable costs per unit:

Direct materials $ 18

Direct labor $ 48

Variable manufacturing overhead $ 12

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Unitary variable production cost= 18 + 48 + 12

Unitary variable production cost= $78