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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Aaron Corporation, which has orty one produet, has provided the following data concerring its most recent month of operations Selling price $ 179 Units in beginning inventory Unita produced Units sold Units in ending inventory 7,300 7,000 300 Variable costs per unit: Direct materials Direct labo: Variable manufacturing overhead Variable selling and administrative cxpense 32 62 26 26 Pixed costs: Pixed manufacturing overhead Pixed selling and adninistrative expense $197,100 30,000 What is the unit produet cost for the menth under variable costing? Mulkiple Choice $173 per unt $120 per unit $147 per unt $146 per unit

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1 Answer S120 per Unit Unit Product Cost under variable costing Particulars Direct Materials Direct Labor Variable Manufacturing overhead Total variable cost of goods sold per unit Amount (S) 32 62 26 120 2 Answer S106,260 Working Notes Particulars Sales Less: Variable Cost of Good ssold Gross Contribution Margin Less: Variable selling and administrative Expenses Contribution Margin Unit Product Cost under variable costing Amount (S) S 328,440 S 209,300 S 119,140 S 12,880 S 106,260 Particulars Amount (S) 19 39 Direct Materials Direct Labor Variable Manufacturing overhead Total variable cost of goods sold per unit Variable Cost of goods sold 3,220 S65 S209,300 Sales = 3,220*$ 102 $328.440 Vriable selling and administrate expenses = 3,220*$4 = $12.880 65

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