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2 April, 07:14

Doon Company incurred the following costs while producing 610 units: direct materials, $ 7 per unit; direct labor, $ 26 per unit; variable manufacturing overhead, $ 18 per unit; total fixed manufacturing overhead costs, $ 15 comma 250 ; variable selling and administrative costs, $ 4 per unit; total fixed selling and administrative costs, $ 9 comma 150. There are no beginning inventories. What is the unit product cost using variable costing?

A. $ 55 per unit

B. $ 51 per unit

C. $ 76 per unit

D. $ 95 per unit

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  1. 2 April, 11:05
    0
    B. $ 51 per unit

    Explanation:

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

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

    = $7 units + $26 + $18

    = $51 per unit

    It recognizes only variable cost like - direct material, direct labor, and variable manufacturing cost. Hence, all other information is ignored
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