Tremble Corporation manufactures and sells one product. The following informatio

Question

Tremble Corporation manufactures and sells one product. The following information pertains to the company’s first year of operations:

The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company’s only product is sold for $233 per unit.

The unit product cost under super-variable costing is:

Multiple Choice

$180 per unit

$105 per unit

$94 per unit

$210 per unit

Variable costs per unit: Direct materials $ 94 Fixed costs per year: Direct labor $ 539,000 Fixed manufacturing overhead $ 3,675,000 Fixed selling and administrative expenses $ 1,350,000

Explanation / Answer

Undeer super variable costing only direct materials is considered variable cost .So under super variable costing only direct materials as unit product cost

Answer $94 per unit

Undeer super variable costing only direct materials is considered variable cost .So under super variable costing only direct materials as unit product cost

Answer $94 per unit

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