Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.
The unit product cost under super-variable costing is:
A) $97 per unit
B) $191 per unit
C) $224 per unit
D) $114 per unit

Question

Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.
The unit product cost under super-variable costing is:
A) $97 per unit 
B) $191 per unit 
C) $224 per unit 
D) $114 per unit

Quizplus · Accepted Answer

Under super-variable costing, the unit product cost is just the direct materials cost of $97 per unit.

Buckbee Corporation Manufactures and Sells One Product