Question

What is the unit product cost under variable costing?

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Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ Fixed costs per year: Fixed manufacturing overhead $1,160,000 Fixed selling and administrative $ 640,000 expense The company sold 40,000 units in the East region and 14,000 units in the West region. It determined that $320,000 of its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

Answer 1

De * Calculation - Direct Material كمطعلهعععه on Variable manufacturing hotal Product Cost Under Variable Costing $ 23. & 15 & 3 841 Unit Product Cost under variable Costing is 941 variable Selling cost is not included in Produd cost it is selling Cost and not manufacturing costo undles variable Costing all fixed cost are considered las period cost, so Fixed manufacturing Cost are not included in Unit cost total fixed cost will be deducted.