What is the unit product cost for the month under variable costing?

A) $61 per unit
B) $37 per unit
C) $32 per unit
D) $66 per unit

Question

What is the unit product cost for the month under variable costing?A) $61 per unitB) $37 per unitC) $32 per unitD) $66 per unit

Michael Montano · Accepted Answer

Final Answer : C, Explanation :  Under variable costing, the unit product cost includes only the variable manufacturing costs, i.e., direct materials, direct labor, and variable manufacturing overhead.Unit product cost per unit = (Total variable manufacturing costs for the month / Total units produced for the month)= ($150,000 + $120,000 + $360,000) / 30,000= $630,000 / 30,000= $21 per unitAdding the variable selling and administrative expenses of $11 per unit to the unit product cost, we get:Unit product cost per unit = $21 + $11= $32 per unitTherefore, the best choice is C, as it represents the correct unit product cost per unit under variable costing.

What is the unit product cost for the month under variable costing?

A) $61 per unit
B) $37 per unit
C) $32 per unit
D) $66 per unit

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