Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the unit product cost for the month under variable costing?

A) $104 per unit
B) $79 per unit
C) $88 per unit
D) $95 per unit

Variable Costing

An accounting method which only includes variable costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Unit Product Cost

The cost assigned to a single unit of a product, incorporating all relevant expenses involved in its production.