A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning inventory		0
Units produced		4,800
Units sold		4,700
Units in ending inventory		100
Variable costs per unit:
Direct materials	$	57
Direct labor	$	59
Variable manufacturing overhead	$	22
Variable selling and administrative expense	$	20
Fixed costs:
Fixed manufacturing overhead	$	100,800
Fixed selling and administrative expense	$	47,000

What is the variable costing unit product cost for the month?

Multiple Choice

• $138 per unit

  Correct
• $158 per unit
• $143 per unit
• $179 per unit

Explanation

Direct materials	$	57
Direct labor		59
Variable manufacturing overhead		22
Variable costing unit product cost	$	138