Question

Vijay Company reports the following information regarding its production costs. $ 10.40 per unit $ 20.40 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced $ 10.40 per unit $ 201,600 24,000 units Compute its product cost per unit under variable costing. (Round your final answer to 2 decimal places.) Total product cost per unit

Answer 1

Under variable costing, only variable costs are included in cost of the product and no fixed costs are included

So, product cost under variable costing

= Direct material cost per unit + Direct labor cost per unit + Variable overhead per unit

= $10.40 + $20.40 + $10.40

= $41.20