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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $90
Units in beginning inventory 0
Units produced 3,400
Units sold 3,000
Units in ending inventory 400
Variable costs per unit:
Direct materials $21
Direct labor $38
Variable manufacturing overhead $6
Variable selling and administrative expense $4

Fixed costs:
Fixed manufacturing overhead $54,400
Fixed selling and administrative expense $3,000

What is the unit product cost for the month under variable costing?

Respuesta :

abiolataiwo2015

Answer:

$65 per unit

Explanation:

Calculation for the unit product cost for the month under variable costing for Aaron Corporation.

Variable costs per unit:

Direct materials $21

Direct labor $38

Variable manufacturing overhead $6

Variable costing unit product cost $ 65

Therefore the unit product cost for the month under variable costing will be $65 per unit.

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