Given the Following Data, Calculate Product Cost Per Unit Under

question 93

Multiple Choice

Given the following data, calculate product cost per unit under variable costing. $$\begin{array} { | l | c | } \hline \text { Direct labor } & \$ 7 \text { per urit } \\\hline \text { Direct rmaterials } & \$ 1 \text { per urit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 20,000 \\\hline \text { Total fixed overhead } & \$ 90,000 \\\hline & \\\hline \text { Expected urits to be produced } & 40,000 \text { urits } \\\hline\end{array}$$

• A)$8 per unit
• B)$8.50 per unit
• C)$10.25 per unit
• D)$10.75 per unit
• E)$12 per unit

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Definitions:

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets and other investments not included in cash equivalents.

Operating Activities

Business actions that are directly related to the production and delivery of goods and services, which are fundamental to the company’s operations.

Cash Flow Per Share

A measure indicating the amount of cash flow generated by a company on a per-share basis, useful for assessing financial performance and liquidity.

GAAP

A set of widely adhered-to accounting norms and guidelines for financial statements.