A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:Units in beginning inventoryUnits produced4,500Units sold4,400Units in ending inventoryVariable costs per unit:100Direct materials$51Direct labor$53Variable manufacturing overheadVariable selling and administrative expense16$14Fixed costs:Fixed manufacturing overheadFixed selling and administrative expense$94,500$44,000What is the variable costing unit product cost for the month?Multiple Choice$134 per unit$155 per unit$120 per unit$131 per unit

Direct costing unit produced is calculated by adding the direct material, direct labor cost, and…

Answered: A manufacturing company that produces a…

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units in beginning inventory
Units produced
4,500
Units sold
4,400
Units in ending inventory
Variable costs per unit:
100
Direct materials
$
51
Direct labor
$
53
Variable manufacturing overhead
Variable selling and administrative expense
16
$
14
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative expense
$94,500
$44,000
What is the variable costing unit product cost for the month?
Multiple Choice
$134 per unit
$155 per unit
$120 per unit
$131 per unit

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