Sea Company Reports the Following Information Regarding Its Production Cost

question 20

Multiple Choice

Sea Company reports the following information regarding its production cost. $\begin{array}{ll}\text { Units produced } & 42,000 \text { units } \\\text { Direct labor } & \$ 35 \text { per unit } \\\text { Direct materials } & \$ 28 \text { per unit } \\\text { Variable overhead } & \$ 17 \text { per unit } \\\text { Fixed overhead } & \$ 105,000 \text { in total }\end{array}$ Compute production cost per unit under variable costing.

• A)$28.00
• B)$82.50
• C)$80.00
• D)$63.00
• E)$35.00

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Definitions:

Long-Term Liabilities

Debts or obligations that are due more than one year in the future.