Assuming that direct labor is a variable cost, product costs under variable cost

Question

Assuming that direct labor is a variable cost, product costs under variable costing include only:

direct materials and direct labor

direct materials, direct labor and variable manufacturing overhead

direct materials, direct labor, variable manufacturing overhead, and variable selling and administrative expenses

direct materials, variable manufacturing overhead, and variable selling and administrative expenses

direct materials and direct labor

direct materials, direct labor and variable manufacturing overhead

direct materials, direct labor, variable manufacturing overhead, and variable selling and administrative expenses

direct materials, variable manufacturing overhead, and variable selling and administrative expenses

Explanation / Answer

Assuming that direct labor is a variable cost, product costs under variable costing include only:

direct materials, direct labor and variable manufacturing overhead

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