Given the following data, calculate product cost per unit under variable costing.
A) $7 per unit
B) $13.30 per unit
C) $11.00 per unit
D) $11.60 per unit
E) $16.50 per unit

Question

Given the following data, calculate product cost per unit under variable costing. 
A) $7 per unit 
B) $13.30 per unit 
C) $11.00 per unit 
D) $11.60 per unit 
E) $16.50 per unit

Quizplus · Accepted Answer

Variable costing method only includes direct costs (variable costs) in calculating the product cost per unit. 
The direct materials cost per unit = $5.50 
The direct labor cost per unit = $2.00 
The variable manufacturing overhead cost per unit = $1.10 
Therefore, the product cost per unit under variable costing = $5.50 + $2.00 + $1.10 = $8.60 
Hence, the best choice is D ($11.60 per unit) because it is closest to $8.60.

Given the Following Data, Calculate Product Cost Per Unit Under