Lenart Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 90,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 10,000 9,000 Units sold during the year 9,000 8,000 Units in ending inventory 1,000 2,000 The unit product cost under variable costing in Year 1 is closest to: a) $23.00 b) $30.00 c) $36.00 d) $29.00
Subject: Cost management & accounting
MCQ's:
Lenart Corporation has provided the following data for its two most recent years of operation:
Variable manufacturing cost per unit produced:
Direct materials $ 13
Direct labor $ 5
Variable manufacturing
Fixed manufacturing overhead per year $ 90,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 6
Fixed selling and administrative expense per year $ 61,000
Year 1 Year 2
Units in beginning inventory 0 1,000
Units produced during the year 10,000 9,000
Units sold during the year 9,000 8,000
Units in ending inventory 1,000 2,000
The unit product cost under variable costing in Year 1 is closest to:
a) $23.00
b) $30.00
c) $36.00
d) $29.00
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