Aqua Primavera,Inc What Is the Unit Product Cost Using Variable Costing?
A)

question 30

Multiple Choice

Aqua Primavera,Inc.has provided the following information for the year. $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 11,000 & \text { units } \\\hline \text { Sales price } & \$ 400 & \text { per unit } \\\hline \text { Direct materials } & \$ 20 & \text { per unit } \\\hline \text { Direct labor } & \$ 35 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 70 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 470,000 & \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 90 & \text { per unit } \\\hline \text { Fixed selling and administration costs } & \$ 240,000 & \text { per year } \\\hline\end{array}$$ What is the unit product cost using variable costing?

• A) $55
• B) $105
• C) $125
• D) $168

Understand the concept of Pareto efficiency and its application to voluntary exchanges.

Analyze the conditions under which a policy or action can be considered potentially efficient.

Recognize the principles of perfect competition and how they lead to efficient resource allocation.

Understand the role of marginal cost and opportunity cost in economic decision-making.

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Definitions:

DC Operations

Activities involved in the day-to-day functioning of a Distribution Center, including goods receipt, storage, packaging, and shipping.

Contract Warehousing

A logistics service model where a company hires a third-party provider under a contract to manage and operate a warehouse on their behalf.

3PL Warehousing

Third-party logistics involving the outsourcing of warehousing and distribution functions to a specialized company.

Distribution KPIs

Key Performance Indicators specific to distribution, measuring the efficiency, accuracy, and speed of distributing goods to the end customer.