Sea Company reports the following information regarding its production cost. Compute the product cost per unit under variable costing.
A) $28.00
B) $82.50
C) $80.00
D) $63.00
E) $35.00

Question

Sea Company reports the following information regarding its production cost.  Compute the product cost per unit under variable costing.
A) $28.00 
B) $82.50 
C) $80.00 
D) $63.00 
E) $35.00

Quizplus · Accepted Answer

Under variable costing, the product cost per unit only includes the variable costs. 
Variable cost per unit = Direct materials + Direct labor + Variable overheads 
= $50 + $20 + $10 
= $80.

Sea Company Reports the Following Information Regarding Its Production Cost