Mennig Corporation produces a single product and has the following cost structure:
-The unit product cost under variable costing is:
A)$182
B)$92
C)$87
D)$94

Question

Mennig Corporation produces a single product and has the following cost structure: 
-The unit product cost under variable costing is:
A)$182 
B)$92 
C)$87 
D)$94

Quizplus · Accepted Answer

Under variable costing, only variable manufacturing costs are included in the product cost. Fixed manufacturing costs are treated as period costs and are expensed in the period incurred. 
Variable manufacturing costs per unit = Direct materials + Direct labor + Variable manufacturing overhead 
= $25 + $27 + $40 
= $92

Mennig Corporation Produces a Single Product and Has the Following