Roma Corporation has computed the following unit costs for the year just ended: $$\begin{array} { l r }
\text { Direct material used } & \$ 11 \
\text { Direct labor } & 17 \
\text { Variable manufacturing overhead } & 21 \
\text { Fixed manufacturing overhead } & 23 \
\text { Variable selling and administrative cost } & 5 \
\text { Fixed selling and administrative cost } & 27
\end{array}$$ Under variable costing, each unit of the company's inventory would be carried at:
A) $49.
B) $54.
C) $72.
D) $104.
E) None of the other answers are correct.

Question

Roma Corporation has computed the following unit costs for the year just ended: $$\begin{array} { l r } 
\text { Direct material used } & \$ 11 \
\text { Direct labor } & 17 \
\text { Variable manufacturing overhead } & 21 \
\text { Fixed manufacturing overhead } & 23 \
\text { Variable selling and administrative cost } & 5 \
\text { Fixed selling and administrative cost } & 27
\end{array}$$ Under variable costing, each unit of the company's inventory would be carried at:
A) $49.
B) $54.
C) $72.
D) $104.
E) None of the other answers are correct.

Quizplus · Accepted Answer

The Answer is A

Roma Corporation Has Computed the Following Unit Costs for the Year