Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $ | 171 | |
| Units in beginning inventory | 0 | ||
| Units produced | 7,200 | ||
| Units sold | 6,900 | ||
| Units in ending inventory | 300 | ||
| Variable costs per unit: | ||
| Direct materials | $ | 30 |
| Direct labor | $ | 60 |
| Variable manufacturing overhead | $ | 24 |
| Variable selling and administrative expense | $ | 24 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 194,400 |
| Fixed selling and administrative expense | $ | 29,400 |
What is the unit product cost for the month under variable costing?
Multiple Choice
Explanation
| Direct materials | $ | 30 | |
| Direct labor | 60 | ||
| Variable manufacturing overhead | 24 | ||
| Variable costing unit product cost | $ | 114 | |
No comments:
Post a Comment