Chapter 21, Problem 11AQC

Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit: total fixed manufacturing overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories.
11 A. What is the unit product cost using variable costing?

Learning Objective 6 Appendix 21A

a. $50 per unit
b. $55 per unit
c. $70 per unit
d. $90 per unit