Question

Sea Company reports the following information regarding its production cost. Units produced 47,000 units Direct labor $ 40 per unit Direct materials $ 33 per unit Variable overhead $ 22 per unit Fixed overhead $ 110,000 in total Compute the product cost per unit under variable costing.

Answer 1

Unitary variable cost= $95

Step-by-step explanation:

Giving the following information:

Direct labor $ 40 per unit

Direct materials $ 33 per unit

Variable overhead $ 22 per unit

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Unitary variable cost= 40 + 33 + 22

Unitary variable cost= $95