Ramos Company has the following unit costs:
$\begin{array}{llr}
\text { Variable manufacturing overhead } &\$13\
\text { Direct materials } &12\
\text { Direct labor} &17\
\text { Fixed manufacturing overhead} &10\
\text { Fixed marketing and administrative }&8
\end{array}$

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What cost per unit would be used for product costs under variable costing?
A) $29
B) $42
C) $52
D) $60

Question

Ramos Company has the following unit costs:
$\begin{array}{llr}
  \text { Variable manufacturing overhead } &\$13\
 \text { Direct materials } &12\
 \text {  Direct labor} &17\
 \text {  Fixed manufacturing overhead} &10\
\text { Fixed marketing and administrative }&8
\end{array}$
 
-
What cost per unit would be used for product costs under variable costing?
A) $29
B) $42
C) $52
D) $60

Quizplus · Accepted Answer

Under variable costing, only variable costs are included in product costs. Therefore, the cost per unit would be the sum of variable manufacturing overhead, direct materials, and direct labor: $13 + $12 + $17 = $42.

Ramos Company Has the Following Unit Costs - What Cost Per Unit Would Be Used for Product

Ramos Company Has the Following Unit Costs -
What Cost Per Unit Would Be Used for Product