| | 11 of 11 (O complete) ? This Quiz: 20 pts po This Question: 2 pts Diggs Comp

Question

| | 11 of 11 (O complete) ? This Quiz: 20 pts po This Question: 2 pts Diggs Company incurred the following costs while producing 610 units: direct materials, $7 per unit, direct labor, $22 per unit, variable manufacturing overhead, $13 per unit, total fixed manufacturing overhead costs, $15,250; variable selling and administrative costs, $11 per unit, total fixed selling and administrative costs, $9,150. There are no beginning inventories What is the unit product cost using variable costing? OA. $93 per unit O B. $42 per unit ° C. $53 per unit O D. $67 per unit

Explanation / Answer

Product Cost (Variable costing) = Direct Materials + Direct Labor + Variable Manufacturing Overhead

= 7 + 22 + 13

= $42 per unit (Option B)

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