Cockriel Inc. ,which produces a single product,has provided the following data for its most recent month of operations: There were no beginning or ending inventories.The variable costing unit product cost was:
A)$42
B)$43
C)$37
D)$48

Question

Cockriel Inc. ,which produces a single product,has provided the following data for its most recent month of operations:  There were no beginning or ending inventories.The variable costing unit product cost was:
A)$42 
B)$43 
C)$37 
D)$48

Quizplus · Accepted Answer

Using the formula for variable costing unit product cost: Variable Costing Unit Product Cost = Variable Costs per Unit + Fixed Costs per Unit.

Plugging in the given values: 
$32 + ($100,000/10,000 units) = $37

Therefore, the variable costing unit product cost is $37, which corresponds to choice C.