Shore Company Reports the Following Information Regarding Its Production Cost

question 144

Multiple Choice

Shore Company reports the following information regarding its production cost.
$$\begin{array} { l l } \text { Units produced } & 28,000 \text { units } \\\text { Direct labor } & \$ 23 \text { per unit } \\\text { Direct materials } & \$ 24 \text { per unit } \\\text { Variable overhead } & \$ 280,000 \text { per unit } \\\text { Fixed overhead } & \$ 94,920 \text { in total }\end{array}$$
Compute production cost per unit under variable costing.

• A) $57.00
• B) $60.39
• C) $47.00
• D) $23.00
• E) $24.00

---

Definitions:

Depreciation

The systematic allocation of an asset's cost over its expected useful life to account for its loss of value over time.

Tax Rate

The division of one's or a company's income that is allotted by the government for tax purposes.

Total Sales

This figure represents the aggregate revenue a company generates from selling its goods or services within a specific period.

Costs

The value of financial resources consumed in the production of goods or services, including material, labor, and overhead expenses.