Kasawaki Company Incurred the Following Costs in Manufacturing Digital Cameras

question 115

Multiple Choice

Kasawaki Company incurred the following costs in manufacturing digital cameras: $$\begin{array} { l r } \text { Direct materials } & \$ 14 \\\text { Indirect materials (variable) } & 4 \\\text { Direct labor } & 8 \\\text { Indirect labor (variable) } & 6 \\\text { Other variable factory overhead } & 10 \\\text { Fixed factory overhead } & 28 \\\text { Variable selling expenses } & 20 \\\text { Fixed selling expenses } & 14\end{array}$$ During the period, the company produced and sold 1,000 units.
What is the inventory cost per unit using variable costing?

• A)$52
• B)$62
• C)$42
• D)$70

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