Question

1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?

Answer 1

See explanation section

Step-by-step explanation:

The examples of variable cost per unit are as follows:

1. Direct Materials per unit;

2. Direct wages per unit;

3. Variable manufacturing overhead per unit;

4. Variable selling expense per unit;

5. Variable administrative expense per unit.

If all the expenses are given in accounting math, we have to add all the expenses per unit to determine the variable cost per unit.

According to the question, as there are 18000 units are produced and sold, we have to multiply the variable cost per unit by the total number of units.