Question

Aqua​ Primavera, Inc. has provided the following information for the year. Units produced 7 comma 000 units Sales price $ 700 per unit Direct materials $ 35 per unit Direct labor $ 30 per unit Variable manufacturing overhead $ 20 per unit Fixed manufacturing overhead $ 430 comma 000 per year Variable selling and administration costs $ 70 per unit Fixed selling and administration costs $ 200 comma 000 per year What is the unit product cost using variable​ costing?

Answer 1

Unitary product cost= $85

Step-by-step explanation:

Giving the following information:

Direct materials $35 per unit

Direct labor $30 per unit

Variable manufacturing overhead $20 per unit

Under the variable costing method, the unitary product cost is calculated using the direct labor, direct material, and variable overhead.

Unitary product cost= 35 + 30 + 20= $85