Question

Put'er There manufactures baseball gloves. Each glove requires $22 of direct materials and $18 of direct labor. Variable manufacturing overhead cost is $7 per unit and fixed manufacturing overhead cost is $19,000 in total. Variable selling and administrative costs are $11 per unit sold and fixed selling and administrative costs are $13,200. Last period, 800 gloves were produced, and 585 gloves were sold. The unit product cost using variable costing is ______ per unit.

Answer 1

$47 per unit

Explanation:

The solution of unit product cost using variable costing is shown below:-

Unit product cost using variable costing = Direct material + Direct labor + Variable manufacturing overhead cost

= $22 + $18 + $7

= $47 per unit

Therefore for determining the unit product cost using variable costing we simply applied the above formula and ignore all other values as they are not relevant.