Given the Following Data, Calculate the Total Product Cost Per

question 89

Multiple Choice

Given the following data, calculate the total product cost per unit under variable costing.
$$\begin{array} { | l | c | } \hline \text { Direct labor } & \$ 3.50 \text { per unit } \\\hline \text { Direct materials } & \$ 1.25 \text { per unit } \\\hline \text { Overhead } & \\\hline \text { Total variable overhead } & \$ 41,400 \\\hline \text { Total fixed overhead } & \$ 150,000 \\\hline & \\\hline \text { Expected units to be produced } & 18,000 \text { units } \\\hline\end{array}$$

• A) $4.75 per unit
• B) $7.05 per unit
• C) $15.38 per unit
• D) $13.08 per unit
• E) $16 per unit

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Definitions:

Slope

In the context of economics, it often refers to the rate of change or inclination of a curve or line, indicating the relationship between two variables.

Budget Line

A visual depiction of every combination of two items that a buyer can afford with a specific budget at constant prices.

Price of Food

The amount of money required to purchase food products, influenced by factors like supply and demand, production costs, and government policies.

Price of Clothing

The amount of money required to purchase garments, influenced by factors like brand, quality, and market demand.