Question

Kray Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,700 Variable costs per unit: Direct materials $ 30 Direct labor $ 23 Variable manufacturing overhead $ 14 Variable selling and administrative expense $ 3 Fixed costs: Fixed manufacturing overhead $ 495,900 Fixed selling and administrative expense $ 410,400 There were no beginning or ending inventories. The variable costing unit product cost was:

Answer 1

Answer:

Unit product cost= $67

Explanation:

Giving the following information:

Direct materials $30

Direct labor $23

Variable manufacturing overhead $14

Under the variable costing method, the unit product cost is calculated using the direct material, direct labor, and variable manufacturing overhead:

Unit product cost= 30 + 23 + 14= $67