Star Manufacturing has the following unit costs: ⚫ Direct materials: $15 • ⚫ Direct labor: $22 ⚫ Variable manufacturing overhead: $18 ⚫ Fixed manufacturing overhead: $25 ⚫ Variable selling and admin: $8 ⚫ Fixed selling and admin: $12 Under variable costing, what would be the unit cost for inventory valuation? A) $37 B) $55 C) $63 D) $88

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
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Star manufacturing has the following solve this accounting questions

Star Manufacturing has the following unit costs:
⚫ Direct materials: $15
•
⚫ Direct labor: $22
⚫ Variable manufacturing overhead: $18
⚫ Fixed manufacturing overhead: $25
⚫ Variable selling and admin: $8
⚫ Fixed selling and admin: $12
Under variable costing, what would be the unit cost for inventory
valuation?
A) $37
B) $55
C) $63
D) $88
Transcribed Image Text:Star Manufacturing has the following unit costs: ⚫ Direct materials: $15 • ⚫ Direct labor: $22 ⚫ Variable manufacturing overhead: $18 ⚫ Fixed manufacturing overhead: $25 ⚫ Variable selling and admin: $8 ⚫ Fixed selling and admin: $12 Under variable costing, what would be the unit cost for inventory valuation? A) $37 B) $55 C) $63 D) $88
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