Aqua Primavera,Inc What Is the Unit Product Cost Using Variable Costing?
A)$75

question 142

Multiple Choice

Aqua Primavera,Inc.has provided the following information for the year. $$\begin{array} { | l | r | l | } \hline \text { Units produced } & 11,000 & \text { units } \\\hline \text { Sales price } & \$ 500 & \text { per unit } \\\hline \text { Direct materials } & \$ 45 & \text { per unit } \\\hline \text { Direct labor } & \$ 30 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 55 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 480,000 & \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 75 & \text { per unit } \\\hline \text { Fixed selling and administration costs } & \$ 300,000 & \text { per year } \\\hline\end{array}$$ What is the unit product cost using variable costing?

• A)$75
• B)$85
• C)$130
• D)$174

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