Question

Mentor Corp. has provided the following information for the current year:
Units produced 3,500 units
Sale price $200 per unit
Direct materials $70 per unit
Direct labor $55 per unit
Variable manufacturing overhead $20 per unit
Fixed manufacturing overhead $350,000 per year
Variable selling and administrative costs $30 per unit
Fixed selling and administrative costs $150,000 per year
Calculate the unit product cost using variable costing.
A. $245
B. $275
C. $55
D. $145

Answer

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