Question

Urban Company reports the following information regarding its production cost:
Units produced 20,000 units
Direct labor $13 per unit
Direct materials $18 per unit
Variable overhead $220,000 per unit
Fixed overhead $110,000 in total
Compute production cost per unit under variable costing.
A. $18.00
B. $36.50
C. $42.00
D. $13.00
E. $31.00

Answer

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