unit product cost for the month under variable costing
Simba Company, which has only one product, has provided the following
data concerning its most recent month of operations:
Selling price ....................................................... $117
Units in beginning inventory.............................. 0
Units produced ................................................... 7,900
Units sold ........................................................... 7,600
Units in ending inventory................................... 300
Variable costs per unit:
Direct materials............................................... $29
Direct labor ..................................................... $37
Variable manufacturing
Variable selling and administrative................. $8
Fixed costs:
Fixed manufacturing overhead........................ $205,400
Fixed selling and administrative ..................... $91,200
a. What is the unit product cost for the month under variable costing?
b. What is the net operating income for the month under variable costing?
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