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 6,700, Units sold 6,300, Units in ending inventory 400. Variable costs per unit direct materials $20, direct labor $41, variable manufacturing overhead $7, variable selling and administrative $7. Fixed costs fixed manufacturing overhead $147,400, fixed selling and administrative $12,600.
What is the variable costing unit product cost for the month?
a. $97
b. $90
Selected: c. $68 This answer is correct.
d. $75
Correct! Unit product cost equals direct materials $20 plus direct labor $41 plus variable manufacturing overhead $7 totals $68.