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:

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, with price as a function of quantity demanded.

Quantity Demanded

It is the total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Rational Consumer

An economic concept of a consumer who seeks to maximize utility or satisfaction from goods and services within the constraint of their budget.

Price Increase

A rise in the cost of goods or services, which can be due to various factors such as inflation, increased production costs, or higher demand.