Question

Vijay Company reports the following information regarding its production costs. Direct materials $ 9.40 per unit Direct labor $ 19.40 per unit Overhead costs for the year Variable overhead $ 9.40 per unit Fixed overhead $ 103,600 Units produced 14,000 units Compute its product cost per unit under variable costing.

Answer 1

Unitary cost= $38.2

Step-by-step explanation:

Giving the following information:

Direct materials $9.40 per unit

Direct labor $19.40 per unit

Variable overhead $ 9.40 per unit

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the unitary cost.

UNitary cost= 9.4 + 19.4 + 9.4

Unitary cost= $38.2