Knowledge Check 01 Excerpt from Areojet Corporation Per Unit Per Month Selling price $ 200,000 Direct...
Knowledge Check 01
Excerpt from Areojet Corporation
| Per Unit | Per Month | |||
| Selling price | $ | 200,000 | ||
| Direct materials | 40,000 | |||
| Direct labor | 10,000 | |||
| Variable manufacturing overhead | 2,000 | |||
| Fixed manufacturing overhead | $ | 140,000 | ||
| Variable selling and administrative expenses | 20,000 | |||
| Fixed selling and administrative expenses | 40,000 | |||
| January | February | March | |
| Beginning inventory | 0 | 0 | 3 |
| Units produced | 4 | 5 | 2 |
| Units sold | 4 | 2 | 5 |
| Ending inventory | 0 | 3 | 0 |
What is the unit product cost for the month of February, using the variable costing method?
-
$52,000
-
$80,000
-
$87,000
-
$122,000
Homework Answers
In variable costing, only variable manufacturing cost are to be added to calculate the product cost
So, Unit Product Cost in Feb will be 40000+10000+2000 = $52,000
Answer is $52,000
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Knowledge Check 01
Excerpt from Areojet Corporation
Per Unit
Per Month
Selling price
$
200,000
Direct...
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