Indiana's per-unit inventoriable cost under variable costing is:
A)$9.50.
B)$25.00.
C)$28.00.
D)$33.00.
E)$40.50.

Question

Quizplus · Accepted Answer

Under variable costing, only the variable manufacturing costs are included in the inventoriable costs. In this case, the variable manufacturing cost per unit is $28.00 ($21.00 + $2.50 + $4.50), which is the sum of direct materials, direct labor, and variable overhead costs. Therefore, the correct answer is C, $28.00 per unit.

Indiana's Per-Unit Inventoriable Cost Under Variable Costing Is