Question

Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $107 Units in beginning inventory 0 Units produced 6,400 Units sold 6,100 Units in ending inventory 300 Variable costs per unit: Direct materials $14 Direct labor $44 Variable manufacturing overhead $8 Variable selling and administrative $8 Fixed costs: Fixed manufacturing overhead $172,800 Fixed selling and administrative $24,600 What is the unit product cost for the month under variable costing?

Answer 1

Unit product cost is equal to $66

Step-by-step explanation:

It is given that direct material cost = $14

Direct labor cost = $44

Variable manufacturing overhead = $8

We have to find the unit product cost

Unit product cost is the sum of material cost labor cost and manufactoring overhead

Therefore unit product cost = $14+$8+$44= $66

So unit product cost is equal to $66