Tat Corporation produces a single product and has the following cost structure:   Number of units produced each year 7,000 Variable costs per unit:   Direct materials $ 77 Direct labor $ 89 Variable manufacturing overhead $  5 Variable selling and administrative expense $  3 Fixed costs:   Fixed manufacturing overhead $532,000 Fixed selling and administrative expense $574,000   The unit product cost under variable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Tat Corporation produces a single product and has the following cost structure:

 

Number of units produced each year 7,000
Variable costs per unit:  
Direct materials $ 77
Direct labor $ 89
Variable manufacturing overhead $  5
Variable selling and administrative expense $  3
Fixed costs:  
Fixed manufacturing overhead $532,000
Fixed selling and administrative expense $574,000

 

The unit product cost under variable costing is:

 

Multiple Choice
  •  
    $247 per unit
  •  
    $171 per unit
  •  
    $174 per unit
  •  
    $169 per unit
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