Given the Following Data, Total Product Cost Per Unit Under

question 121

True/False

Given the following data, total product cost per unit under variable costing is $10.75.
$$\begin{array} { | l | c | } \hline \text { Direct labor } & \$ 7 \text { per unit } \\\hline \text { Direct materials } & \$ 1 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 20,000 \\\hline \text { Total fixed overhead } & \$ 90,000 \\\hline & \\\hline \text { Expected units to be produced } & 40,000 \text { units } \\\hline\end{array}$$

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to present value in various financial models.

Cash Inflows

The total amount of money received by a company or project, from various sources including operations, investments, and financing.

Purchase Price

The cost paid to acquire a good or service, including initial acquisition costs and any associated transaction fees.

Estimated Useful Life

The expected time period during which an asset is likely to be functional and economically useful.