Question

Frames, Inc. manufactures large wooden picture frames. Each frame requires $19 of direct materials and $40 of direct labor. Variable manufacturing overhead cost is $9 per frame produced, and variable selling and administrative expense is $13 per frame sold. The company produces 5,000 units each month and total fixed manufacturing overhead cost per month is $15,000. The unit product cost of each frame using variable costing is

Answer 1

$68 per unit

Step-by-step explanation:

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

= Direct material cost per unit + direct labor cost per unit + variable manufacturing overhead cost per unit

= $19 + $40 + $9

= $68 per unit

We simply added the above three cost so that the unit product cost could come