Question

Kray Incorporated, which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 4,000 Variable costs per unit: Direct materials $ 38 Direct labor $ 20 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $316,000 Fixed selling and administrative expense $300,000 There were no beginning or ending inventories. The variable costing unit product cost was:

Answer 1

Unitary variable production cost= $66

Step-by-step explanation:

Giving the following information:

Variable costs per unit:

Direct materials $ 38

Direct labor $ 20

Variable manufacturing overhead $ 8

Variable selling and administrative expense $ 4

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

Unitary variable production cost= 38 + 20 + 8

Unitary variable production cost= $66