Jarmon Company, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
-What is the unit product cost for the month under variable costing?
A) $78
B) $105
C) $73
D) $110

Question

Jarmon Company, which has only one product, has provided the following data concerning its most recent month of operations:  The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
-What is the unit product cost for the month under variable costing?
A) $78 
B) $105 
C) $73 
D) $110

Quizplus · Accepted Answer

Unit product cost under variable costing includes only variable costs. From the given data, variable costs per unit are $45 for direct materials, $14 for direct labor, and $14 for variable overhead, totaling to $73 per unit.

Jarmon Company, Which Has Only One Product, Has Provided the Following