The Pacific Company manufactures a single product. The following data relate to the year just completed:
$\begin{array}{|l|r|}
\hline \text { Variable costs per unit: } & \
\hline \text { Production } &\$ 43 \
\hline \text { Selling and administrative } & \$ 15 \
\hline \text { Fixed costs in total: } & \
\hline \text { Production } &\$ 145,000 \
\hline \text { Selling and administrative } &\$ 95,000 \\hline
\end{array}$
During the year, 5,000 units were produced and 4,800 units were sold. There were no beginning inventories.

-Under variable costing,what was the unit product cost?
A) $43.
B) $58.
C) $72.
D) $91.

Question

The Pacific Company manufactures a single product. The following data relate to the year just completed:
$\begin{array}{|l|r|}
\hline \text { Variable costs per unit: } & \
\hline \text { Production } &\$ 43  \
\hline \text { Selling and administrative } & \$ 15 \
\hline \text { Fixed costs in total: } &  \
\hline \text { Production } &\$ 145,000 \
\hline \text { Selling and administrative } &\$ 95,000 \\hline
\end{array}$
During the year, 5,000 units were produced and 4,800 units were sold. There were no beginning inventories.

-Under variable costing,what was the unit product cost?
A) $43.
B) $58.
C) $72.
D) $91.

Quizplus · Accepted Answer

Under variable costing, the unit product cost includes only the variable production costs, which are $43 per unit. Variable selling and administrative costs are not included in the product cost calculation.

The Pacific Company Manufactures a Single Product During the Year, 5,000 Units Were Produced and 4,800 Units