Question

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $21
Direct labor $38
Variable manufacturing overhead $6
Variable selling and administrative expense $4

Fixed costs:
Fixed manufacturing overhead $54,400
Fixed selling and administrative expense $3,000

What is the unit product cost for the month under variable costing?

Answer 1

The unit product cost is give nas 65 dollars

How to solve for the unit product cost

Solve for the Unit product cost under variable costing

= $21 + $38 + $6

= $65 per unit

[3,000 units x $90 per unit] = $270,000

3,000 units x $65 per unit] = ($195,000)

[3,00 units x $4 per unit] = ($12,000)

The contribution margin = 63000 dollars

The unit product cost is give nas 65 dollars

Answer 2

$65 per unit

Step-by-step explanation:

Calculation for the unit product cost for the month under variable costing for Aaron Corporation.

Variable costs per unit:

Direct materials $21

Direct labor $38

Variable manufacturing overhead $6

Variable costing unit product cost $ 65

Therefore the unit product cost for the month under variable costing will be $65 per unit.