Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
|Units in beginning inventory||0|
|Units in ending inventory||300|
|Variable costs per unit:|
|Variable manufacturing overhead||$1|
|Variable selling and administrative||$8|
|Fixed manufacturing overhead||$140,800|
|Fixed selling and administrative||$91,500|
What is the unit product cost for the month under variable costing?
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Question & Answer: data concerning its most recent month of operations:…..
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$98 per unit
$84 per unit
$76 per unit
$106 per unit
Answer : $76 per unit
Unit product cost under variable costing = Direct materials + Direct labor + variable manufacturing overhead
= $45 + $30 + $1
= $76 per unit.