Aqua Primavera, Inc What Is the Unit Product Cost Using Variable Costing?
A)

question 3

Multiple Choice

Aqua Primavera, Inc. has provided the following information for the year. $\begin{array}{|l|lc|}\hline \text { Units produced } & 11,000 \text { units } \\\hline \text { Sales price } & \$ 500 \text { per unit } \\\hline \text { Direct materials } & \$ 45 \text { per unit } \\\hline \text { Direct labor } & \$ 30 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 55 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 480,000 \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 75 \text { per unit } \\\hline \text { ced selling and administration costs } & \$ 300,000 \text { per year } \\\hline\end{array}$
What is the unit product cost using variable costing?

• A) $75
• B) $85
• C) $130
• D) $174

---

Definitions:

Lend Out

The act of providing money or assets to another party with the expectation that it will be returned or repaid, often with interest.

Debt Issue

The raising of funds through the sale of bonds, notes, or other forms of debt to investors.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Capital Structure

The mix of debt and equity financing used by a company to finance its overall operations and growth.