Sharron Inc., which produces a single product, has provided the following data for its most recent month of operations:
|
Number of units produced
|
3,000
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$91
|
|
Direct labor
|
$13
|
|
Variable manufacturing overhead
|
$7
|
|
Variable selling and administrative expense
|
$6
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$237,000
|
|
Fixed selling and administrative expense
|
$165,000
|
There were no beginning or ending inventories. The variable costing unit product cost was:
$111 per unit
$190 per unit
$110 per unit
$117 per unit