Sequoyah,Inc What Is the Unit Product Cost Using Variable Costing?
A)$60

question 130

Multiple Choice

Sequoyah,Inc.reports the following information: $\begin{array}{|l|r|l|}\hline \text { Units produced } & 540 &\text { units } \\\hline \text { Units sold } & 540 &\text { units } \\\hline \text { Sales price } & \$ 160 &\text { per unit } \\\hline \text { Direct materials } & \$30&\text { per unit } \\\hline \text { Direct labor } & \$ 15 &\text { per unit } \\\hline \text { Variable manufacturing overhead } & \$10&\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 20,000 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 &\text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,000 & \text { per year }\\\hline\end{array}$ What is the unit product cost using variable costing?

• A)$60
• B)$82
• C)$55
• D)$105

---

Definitions:

Shareholder Agreement

A contract among shareholders of a company outlining their rights, obligations, and mutual agreements regarding company operations and governance.

Duration

The length of time during which something exists or continues.

Statutory Close Corporation Supplement

Additional legal provisions or regulations applicable to a close corporation, closely held and not publicly traded, defined by statute.

MBCA

The Model Business Corporation Act, a set of laws proposed to standardize and regulate the incorporation and operation of businesses across the United States.