MC Qu. 88 Hayes Inc. provided the following information... Hayes Inc. provided the following information for the current year: Beginning inventory 210 units Units produced 860 units Units sold 913 units Selling price $ 260 /unit Direct materials $ 46 /unit Direct labor $ 27 /unit Variable manufacturing overhead $ 26 /unit Fixed manufacturing overhead $ 36,980 /yr Variable selling/administrative costs $ 19 /unit Fixed selling/administrative costs $ 26,500 /yr What is the unit product cost for the year using variable costing

Unit Product Cost=$99

Explanation:

Given Data:

Beginning inventory=210 units

Units produced =860 units

Units sold=913 units

Selling price per unit= $ 260

Direct materials per unit= $46

Direct labor= $ 27 /unit

Variable manufacturing overhead per unit=$ 26

Fixed manufacturing overhead= $ 36,980 /yr

Variable selling/administrative costs =$ 19 /unit

Fixed selling/administrative costs =$ 26,500 /yr

Required:

the unit product cost for the year using variable costing=?

Solution:

According to variable costing unit product cost is the sum of direct labor,Direct material and Variable manufacturing overhead per unit.

Unit Product Cost=Direct materials per unit+Direct labor per unit+Variable manufacturing overhead per unit

Unit Product Cost=$46++$27+$27

Unit Product Cost=$99

answer; normative economics;