Assuming that direct labor is a variable cost, product costs under variable costing include only:
a. direct materials and direct labor.
Selected: b. direct materials, direct labor, and variable manufacturing overhead. This answer is correct.
c. direct materials, direct labor, variable manufacturing overhead, and variable selling and administrative expenses.
d. direct material, variable manufacturing overhead, and variable selling and administrative expenses.
Correct! Product costs under variable costing include only variable manufacturing costs, which would be direct materials, direct labor and variable manufacturing overhead.
s $71 plus $7 totals $197.
overhead of $12 which totals $34.