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Mentor Corp. has provided the following information for the current year: Units produced 3,500units Sale price$200per unit Direct

Mentor Corp. has provided the following information for the current year: Units produced 3,500units Sale price$200per unit Direct materials$70per unit Direct labor$55per unit Variable manufacturing overhead$20per unit Fixed manufacturing overhead$350,000per year Variable selling and administrative costs$30per unit Fixed selling and administrative costs$150,000per year Calculate the unit product cost using variable costing.

3 Answers

R
Rex Schinner

Feb 20, 2025

the unit product cost using variable costing is $145 per unit Explanation:The computation of the unit product cost using variable costing is as follows:= Direct materials per unit +  direct labor per unit + variable overhead per unit = $70 + $55 + $20= $145 per unitHence the unit product cost using variable costing is $145 per unit We simply applied the above formula so that the correct value could comeAnd, the same is to be considered... Show More

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