Question

X reported the following unit costs information associated with one of its products A1: Direct materials $110 Direct manufacturing labor 90 Variable manufacturing overhead 45 Fixed manufacturing overhead 33 Sales commissions (2% of sales) 10 Research & Development 20 After-sales support 5 Administrative salaries 28 Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What are the direct variable costs per unit associated with Product A1?

Answer 1

Answer:

$255

Explanation:

Direct variable costs per unit associated with Product A1 can be calculated by adding direct material, direct manufacturing labor, variable manufacturing overhead and sales commission.

Calculation

Direct variable costs per unit associated with Product A1 = Direct materials + Direct manufacturing labor + Variable manufacturing overhead + Sales commissions

Direct variable costs per unit associated with Product A1 = $110 + $90 + $45 + $10

Direct variable costs per unit associated with Product A1 = $255