(Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 23, 000 units and sold 16, 000 units.The company's only product is sold for $243 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A)$212 per unit
B)$84 per unit
C)$167 per unit
D)$106 per unit

Question

(Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 23, 000 units and sold 16, 000 units.The company's only product is sold for $243 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A)$212 per unit 
B)$84 per unit 
C)$167 per unit 
D)$106 per unit

Quizplus · Accepted Answer

The Answer of (Appendix 5A)Schaadt Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 23, 000 units and sold 16, 000 units.The company's only product is sold for $243 per unit. Assume that the company uses a variable costing system that assigns $22 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A)$212 per unit 
B)$84 per unit 
C)$167 per unit 
D)$106 per unit

(Appendix 5A)Schaadt Corporation Manufactures and Sells One Product