(TCO E) Rebel Company manufactures a single product and has the following cost s
ID: 2423817 • Letter: #
Question
(TCO E) Rebel Company manufactures a single product and has the following cost structure: Variable costs per unit: Production................................................. $5 Selling and administrative........................... $3 Fixed costs in total: Production................................................. $32,000 Selling and administrative........................... $16,000 Last year there were no beginning inventories, 8,000 units were produced, and 7,800 units were sold. Under variable costing, the unit product cost would be
Explanation / Answer
Under variable costing, unit product cost = variable production cost + variable selling and administrative cost
= 5 + 3 = $ 8.
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