Sharko Corporation produces a single product and has the following cost structure:
Number of units produced each year is 8,000. Variable cost per unit for direct materials is $66, direct labor is $18, variable manufacturing overhead is $2 and variable selling and administrative expense is $3. Fixed costs for the year are fixed manufacturing overhead of $624,000 and fixed selling and administrative expense of $184,000.
The variable costing unit product cost is:
a. $89
Selected: b. $86 This answer is correct.
c. $164
d. $87
Correct! Unit product cost equals $66 plus $18 plus $2 equals $86.
plus $62 plus $71 plus $7 totals $197.
overhead of $12 which totals $34.