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lora16 [44]
3 years ago
14

MC Qu. 169 A manufacturer reports the following costs to produce... A manufacturer reports the following costs to produce 23,000

units in its first year of operations: Direct materials, $23 per unit, Direct labor, $19 per unit, Variable overhead, $276,000, and Fixed overhead, $322,000. The total product cost per unit under variable costing is:
Business
1 answer:
Firdavs [7]3 years ago
5 0

Answer:

Unitary product cost= $54

Explanation:

Giving the following information:

Production= 23,000 units

Direct materials= $23 per unit

Direct labor= $19 per unit

Variable overhead= $276,000

<u>Under the variable costing method, the unit product cost is calculated using direct material, direct labor, and variable overhead.</u>

First, we need to calculate the unitary variable overhead.

Unitary overhead= 276,000/23,000= $12 per unit

Unitary product cost= 23 + 19 + 12= $54

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