Bateman Corporation which has only one product has provided

Bateman Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$117

Units in beginning inventory

0

Units produced

4,700

Units sold

4,400

Units in ending inventory

300

Variable costs per unit:

    Direct materials

$36

    Direct labor

$38

    Variable manufacturing overhead

$4

    Variable selling and administrative

$11

Fixed costs:

    Fixed manufacturing overhead

$89,300

    Fixed selling and administrative

$26,400

What is the unit product cost for the month under variable costing?

$89 per unit

$97 per unit

$108 per unit

$78 per unit

  

Selling price	$117
Units in beginning inventory	0
Units produced	4,700
Units sold	4,400
Units in ending inventory	300
Variable costs per unit:
Direct materials	$36
Direct labor	$38
Variable manufacturing overhead	$4
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$89,300
Fixed selling and administrative	$26,400

Solution

Ans: d. $78 per unit

Explanation:

Variable Costing:

Direct Materials

$36

Direct Labor

$38

Variable manufacturing overhead

$4

Unit Product Cost

$78 per unit

Variable Costing:
Direct Materials	$36
Direct Labor	$38
Variable manufacturing overhead	$4
Unit Product Cost	$78 per unit