Question

Vaughn Manufacturing sells its product for $60 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $14, direct labor $15, and variable overhead $5. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under variable costing is

Answer 1

$2.00

Step-by-step explanation:

Consider Variable Manufacturing Costs only.

The per unit manufacturing cost under variable costing is $2.00