A manufacturer reports the following costs to produce 13,000 units in its first year of operations: Direct materials Direct labor $13 per unit $9 per unit Variable overhead $104,000 Fixed overhead $156,000 The total product cost per unit under variable costing is: a. $22 per unit. b. $30 per unit. c. $42 per unit. d. $34 per unit. e. $21 per unit.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
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Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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A manufacturer reports the following costs to produce 13,000 units
in its first year of operations:
Direct materials
Direct labor
$13 per unit
$9 per unit
Variable overhead $104,000
Fixed overhead
$156,000
The total product cost per unit under variable costing is:
a. $22 per unit.
b. $30 per unit.
c. $42 per unit.
d. $34 per unit.
e. $21 per unit.
Transcribed Image Text:A manufacturer reports the following costs to produce 13,000 units in its first year of operations: Direct materials Direct labor $13 per unit $9 per unit Variable overhead $104,000 Fixed overhead $156,000 The total product cost per unit under variable costing is: a. $22 per unit. b. $30 per unit. c. $42 per unit. d. $34 per unit. e. $21 per unit.
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