Aaron Corporation, which has only one product, has provided the following data c

Question

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 90 Units in beginning inventory 3,400 3,000 400 2:27:35Units produced Units sold Units in ending inventory Variable costs per unit: $ 21 $ 38 Direct materials Direct labor variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $54,400 3,000 What is the unit product cost for the month under variable costing? Multiple Choice $69 per unit $65 per unit $85 per unit $81 per unit

Explanation / Answer

Answer) $65 per unit

Explanation :

Product cost under variable costing = Direct material + Direct labour + Variable mnufacturing o/h

= $21 + $38 + $6 = $65 per unit

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