What Is the Unit Product Cost for the Month Under

question 71

Multiple Choice

What is the unit product cost for the month under variable costing?

• A)$98 per unit
• B)$84 per unit
• C)$76 per unit
• D)$106 per unit

---

Definitions:

Idle Capacity

Represents the condition where production resources are not used to their full potential, resulting in unutilized capacity.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant to allocate overhead costs to products.

Activity-based Costing

A costing method that allocates overhead and indirect costs to specific activities, providing a more accurate representation of the costs associated with producing a product.

Activity-based Costing

An accounting method where overhead and indirect costs are allocated to the corresponding products and services based on the required activities.