Unile Auto Produces and Sells an Auto Part for $60

question 167

Multiple Choice

Unile Auto produces and sells an auto part for $60.00 per unit. In 2015, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:
$\begin{array}{ll}\text { Direct materials } & \$ 20.00 \text { per unit } \\\text { Direct manufacturing labor } & \$ 4.00 \text { per unit } \\\text { Variable manufacturing costs } & \$ 1.00 \text { per unit } \\\text { Sales commissions } & \$ 6.00 \text { per part } \\\text { Fixed manufacturing costs } & \$ 750,000 \text { per year } \\\text { Administrative expenses all fixed } & \$ 270,000 \text { per year }\end{array}$
-What is the inventoriable cost per unit using variable costing?

• A) $20.00
• B) $24.00
• C) $25.00
• D) $31.00

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Definitions:

Mutualism

A symbiotic relationship between two species in which both species benefit from the interaction, contributing to their survival and well-being.

Parasitism

A relationship between two species where one organism (the parasite) lives on or in another organism (the host), causing it harm but usually not immediate death.

Nourishment

The substances necessary for growth, health, and good condition, often referred to in the context of food and nutrition.

Species

A basic unit of biological classification, defined as a group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.