Given the Following Data, Calculate the Total Product Cost Per

question 39

Multiple Choice

Given the following data, calculate the total product cost per unit under variable costing. $\begin{array}{|l|c|}\hline \text { Direct labor } & \$ 3.50 \text { per unit } \\\hline \text { Direct materials } & \$ 1.25 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 41,400 \\\hline \text { Total fixed overhead } & \$ 150,000 \\\hline & \\\hline \text { Expected units to be produced } & 18,000 \text { units } \\\hline\end{array}$

• A)$4.75 per unit
• B)$7.05 per unit
• C)$15.38 per unit
• D)$13.08 per unit
• E)$16 per unit

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Definitions:

Pareto Diagram

A graphical representation that displays the relative importance of differences within a set of data, usually to identify which factors are the most significant.

Cause-and-Effect Diagram

A visual tool that helps identify, sort, and display possible causes of a specific problem or quality characteristic.

Cafeteria Dissatisfaction

Reflects displeasure or unhappiness with the services, food quality, or overall experience of dining in a cafeteria setting.

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables, helping to identify any correlations.