Given the Following Data,calculate Product Cost Per Unit Under Variable

question 57

Multiple Choice

Given the following data,calculate product cost per unit under variable costing.
$\begin{array}{|l|c|}\hline \text { Direct labor } & \$ 7 \text { per unit } \\\hline \text { Direct materials } & \$ 1 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 20,000 \\\hline \text { Total fixed overhead } & \$ 90,000 \\\hline & \\\hline \text { Expected units to be produced } & 40,000 \text { units } \\\hline\end{array}$

• A) $8 per unit
• B) $8.50 per unit
• C) $10.25 per unit
• D) $10.75 per unit
• E) $12 per unit

Distinguish between internal and externally imposed benchmarks in assessing performance.

Understand various metrics such as material price variances and operating income, and their applications in different departments.

Understand the role and effectiveness of the balanced scorecard as a strategic performance management system.

Recognize the importance of linking performance metrics to strategic objectives in performance measurement systems.

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Definitions:

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life, after deducting the cost of removal or disposal.

Net Income

The total profit of a company after accounting for all expenses and income, indicating its financial performance over a specific period.

Incremental Cost

The additional cost that a company incurs when producing one additional unit of product or serving one additional customer.

Variable Overhead

Costs that fluctuate with production volume, such as utilities and indirect materials, which do not directly correlate to unit production.