Question: Granite Gearworks manufactures a single product, a specialized gear used in industrial machinery. Each gear sells for $32, and the company sells 450,000 gears annually. The unit cost data are presented below: Direct material Direct labor Variable Fixed $7.00 $6.00 Manufacturing overhead $3.00 Selling & administrative $5.00 $8.00 $4.00 The unit product cost of gears under variable costing is: A) $16 B) $21 C) $18 D) $29

Question: Granite Gearworks manufactures a single product, a specialized gear used in industrial machinery. Each gear sells for $32, and the company sells 450,000 gears annually. The unit cost data are presented below: Direct material Direct labor Variable Fixed $7.00 $6.00 Manufacturing overhead $3.00 Selling & administrative $5.00 $8.00 $4.00 The unit product cost of gears under variable costing is: A) $16 B) $21 C) $18 D) $29