8. Given the following data, calculate product cost per unit under variable cost

Question

8. Given the following data, calculate product cost per unit under variable costing.

Direct labor

$7 per unit

Direct materials

$1 per unit

Overhead

Total variable overhead

$20,000

Total fixed overhead

$90,000

Expected units to be produced

40,000 units

A. $8 per unit
B. $8.50 per unit C. $10.25 per unit D. $10.75 per unit E. $12 per unit

Direct labor

$7 per unit

Direct materials

$1 per unit

Overhead

Total variable overhead

$20,000

Total fixed overhead

$90,000

Expected units to be produced

40,000 units

Explanation / Answer

90,000/40,000 =2.25

7 per unit+$1 per unit+2.25=10.25 per un

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