Question

MC Qu. 86 Urban Company reports the following... Urban Company reports the following information regarding its production cost: Units produced 36,000 units Direct labor $ 29 per unit Direct materials $ 34 per unit Variable overhead $ 236,000 in total Fixed overhead $ 126,000 in total Compute production cost per unit under variable costing.

Answer 1

Answer:

Production cost per unit (under variable cost) = $69.55

Explanation:

Given:

Total unit produced = 36,000

Direct labor = $29 per unit

Direct material = $34 per unit

Variable overhead = $236,000

Total Fixed overhead = $126,000

Computation:

Variable Overhead per unit = $236,000 / 36,000 = $6.55

Production cost per unit (under variable cost) = Direct Labor per unit + Direct material per unit + Direct Variable Overhead per unit

Production cost per unit (under variable cost) = $29 + $34 + $6.55

Production cost per unit (under variable cost) = $69.55