Question

Kray Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced 5,700
Variable costs per unit:
Direct materials $47
Direct labor $21
Variable manufacturing overhead $8
Variable selling and administrative expense $5
Fixed costs:

Fixed manufacturing overhead $490,200
Fixed selling and administrative expense $438,900

There were no beginning or ending inventories. The variable costing unit product cost was:_______

Answer 1

Answer:

$76

Explanation:

The computation of Unit product cost under variable costing is shown below:-

Unit product cost under variable costing = Direct material + Direct labor + Variable manufacturing overhead

= $47 + $21 + $8

= $76

So, for calculating the Unit product cost under variable costing we simply added the direct material, direct labor and variable manufacturing overhead.