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Given the following data, calculate product cost per unit under variable costing.
Direct labor $ 8 per unit Direct materials $ 3 per unit Overhead Total variable overhead $ 30,000 Total fixed overhead $ 85,000 Expected units to be produced 50,000 units.
a. $7 per unit
b. $13.30 per unit
c. $11.00 per unit
d. $11.60 per unit
e. $16.50 per unit

Respuesta :

Nyctalus

Answer: Option D

Explanation: As we have to calculate the cost as per variable costing, we will not take into consideration the fixed overhead incurred. Thus, we can compute cost per unit as follows :-

.

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

                                                                                                   

[tex]cost\:per\:unit\:= \$8\:+\:\$3\:+\frac{\$30,000}{50,000}[/tex]

                                 $11.6

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