Answer the following questions using the information below:
Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

-What is cost of goods sold per unit using variable costing?
A)$20
B)$23
C)$30
D)$45

Question

Answer the following questions using the information below:
Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:
 
-What is cost of goods sold per unit using variable costing?
A)$20 
B)$23 
C)$30 
D)$45

Quizplus · Accepted Answer

Variable costing includes only variable production costs in the cost of goods sold, which is $20 per unit.

Answer the Following Questions Using the Information Below