Jarvix Company, Which Has Only One Product, Has Provided the Following

question 28

Multiple Choice

Jarvix Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 111 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,800 \\\hline \text { Units sold } & 8,900 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 34 \\\hline \text { Direct labour } & \$ 37 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } &\\\hline \text { Fixed manufacturing overhead } & \$ 61,600 \\\hline \text { Fixed selling and administrative } & \$ 169,100 \\\hline\end{array}$ The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.


-What was the unit product cost for the month under variable costing?

• A) $74.
• B) $81.
• C) $83.
• D) $90.

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Definitions:

Chargeout Rate

The rate at which a company bills its clients or internal departments for services provided, typically used in professional services firms.

Billable Hour

A unit of measure used to charge clients for services, representing one hour of work provided by a company or professional.

Accounting Standards

A set of principles and rules that define how financial transactions and statements should be recorded and reported.

Cost of Inventories

The total value of all the components that make up inventory, including materials, labor, and allocated overhead.