Plummer Corporation has provided the following data for its two most recent year
ID: 2527966 • Letter: P
Question
Plummer Corporation has provided the following data for its two most recent years of operation:
63,000
The unit product cost under variable costing in Year 1 is closest to:
Selling price per unit $ 44 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 9 Direct labor $ 6 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $63,000
Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 66,000Explanation / Answer
The unit product cost under variable costing in Year 1 is closest to: = 24
The unit product cost under variable costing takes all the variable costs including that of selling and administrative.
Direct material 9 Direct labor 6 Variable manufacturing 4 Variable selling and Admin 5 Total Unit cost 24