Favini Company, Which Has Only One Product, Has Provided the Following

question 104

Multiple Choice

Favini Company, which has only one product, has provided the following data concerning its most recent month of operations:
-What is the unit product cost for the month under variable costing?

• A)$98
• B)$125
• C)$118
• D)$91

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Definitions:

Accounts Payable

Liabilities owed by a business to creditors for purchases of goods and services on credit, to be paid in the near term.

Work in Process Inventory

inventory that is in the production process but not yet completed.

Factory Wages Payable

Liabilities for wages owed to manufacturing employees that have not yet been paid.

Factory Payroll

The total compensation paid to employees working within a manufacturing setting, including wages, salaries, and benefits.