Labadie 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 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
The unit product cost under super-variable costing is:
A) $117 per unit
B) $215 per unit
C) $94 per unit
D) $181 per unit

Question

Labadie 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 25,000 units and sold 22,000 units. The company's only product is sold for $251 per unit.
The unit product cost under super-variable costing is:
A) $117 per unit 
B) $215 per unit 
C) $94 per unit 
D) $181 per unit

Quizplus · Accepted Answer

Under super-variable costing, the unit product cost is just the direct materials cost of $94 per unit.

Labadie Corporation Manufactures and Sells One Product