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Dillon Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, 12 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $4 per unit; total fixed selling and administrative costs, $4,320. There are no beginning inventories.

What is the unit product cost using variable costing?
A. $72 per unit
B. $59 per unit
C. $47 per unit
D. $43 per unit

Respuesta :

MrRoyal

Answer:

The unit cost is $43 per unit

Explanation:

Required

Determine the unit product cost?

Using variable costing, the unit product cost is:

[tex]Unit = DM+ DL + VMO[/tex]

[tex]DM = Direct\ Materials =\$9[/tex]

[tex]DL = Direct\ Labor =\$22[/tex]

[tex]VMO = Variable\ Manufacturing\ Overhead = \$12[/tex]

So, we have:

[tex]Unit = \$9 + \$22 + \$12[/tex]

[tex]Unit = \$43[/tex]

Hence, the unit cost is $43 per unit

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