Question

Frames, Inc. manufactures large wooden picture frames. Each frame requires $19 of direct materials and $40 of direct labor. Variable manufacturing overhead cost is $9 per frame produced, and variable selling and administrative expense is $13 per frame sold. The company produces 5,000 units each month and total fixed manufacturing overhead cost per month is $15,000. The unit product cost of each frame using variable costing is:_______.

Answer 1

Answer:

Unitary production cost= $68

Explanation:

Giving the following information:

Each frame requires $19 of direct materials and $40 of direct labor. Variable manufacturing overhead cost is $9 per frame produced.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Unitary production cost= 19 + 40 + 9= $68