Question

Kray Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,500 Variable costs per unit: Direct materials $ 39 Direct labor $ 27 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 401,500 Fixed selling and administrative expense $ 451,000 There were no beginning or ending inventories. The variable costing unit product cost was:

Answer 1

the variable costing unit product cost is $77

Step-by-step explanation:

The computation of the variable costing unit product cost is shown below:

= Direct material + direct labour + variable manufacturing overhead

= $39 + $27 + $11

= $77

hence, the variable costing unit product cost is $77

We simply added the three items so that the variable costing unit could come

The same would be relevant