Question:
Feasal Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$108
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
7,700
|
|
Units sold
|
7,500
|
|
Units in ending inventory
|
200
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$26
|
|
Direct labor
|
$38
|
|
Variable manufacturing overhead
|
$3
|
|
Variable selling and administrative
|
$4
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$184,800
|
|
Fixed selling and administrative
|
$90,000
|
What is the unit product cost for the month under variable costing?
A) $71
B) $67
C) $95
D) $91