Paney Company makes calendars. Information on cost per unit is as follows:Direct materials$1.50Direct labor1.20Variable overhead0.90Variable marketing expense0.40Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10. What is the variable cost per unit? a.$4.00 b.$3.70 c.$4.60 d.$5.00 e.$1.30

Variable cost per unit will not vary for a different levels of production.

Answered: Paney Company makes calendars.…

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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Paney Company makes calendars. Information on cost per unit is as follows:

Direct materials	$1.50
Direct labor	1.20
Variable overhead	0.90
Variable marketing expense	0.40

Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10. What is the variable cost per unit?

	a.	$4.00
	b.	$3.70
	c.	$4.60
	d.	$5.00
	e.	$1.30

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