DeJager Company reported the following information about the production and sales of its only product:

-The cost of goods sold under variable costing would be
A) $56,000.
B) $63,000.
C) $44,800.
D) $36,400.

Question

DeJager Company reported the following information about the production and sales of its only product:
 
-The cost of goods sold under variable costing would be
A) $56,000. 
B) $63,000. 
C) $44,800. 
D) $36,400.

Quizplus · Accepted Answer

Under variable costing, the cost of goods sold includes only the variable manufacturing costs, which are materials, labor, and variable overhead. In this scenario, the total variable manufacturing cost per unit is $11 + $12 + $5 = $28. Therefore, the cost of goods sold under variable costing is 1,600 units x $28 = $44,800.

DeJager Company Reported the Following Information About the Production and Sales