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25 October, 14:52

McIntosh, Inc. reports the following information: Beginning Finished Goods Inventory 50 units Units produced 530 units Units sold 580 units Sales price $ 160 per unit Direct materials $ 29 per unit Direct labor $ 13 per unit Variable manufacturing overhead $ 12 per unit Fixed manufacturing overhead $ 19 comma 400 per year Variable selling and administrative costs $ 5 per unit Fixed selling and administrative costs $ 13 comma 500 per year What is the unit product cost using variable costing? (Round your answer to the nearest cent.) A. $ 61.60 B. $ 54.00 C. $ 121.08 D. $ 90.60

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  1. 25 October, 14:58
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    The correct answer is B.

    Explanation:

    Giving the following information:

    Units produced 530 units

    Direct materials $ 29 per unit

    Direct labor $ 13 per unit

    Variable manufacturing overhead $ 12 per unit

    Under the variable costing method, the unitary variable cost is the sum of direct material, direct labor and, variable manufacturing overhead.

    Unitary variable cost = 29 + 13 + 12 = $54
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