Given the Following Data, Calculate Product Cost Per Unit Under

question 124

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

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