Aqua Primavera, Inc What Is the Unit Product Cost Using Variable Costing?
A)

Multiple Choice

Aqua Primavera, Inc. has provided the following information for the year. $\begin{array}{|l|lc|}\hline \text { Units produced } & 11,000 \text { units } \\\hline \text { Sales price } & \$ 500 \text { per unit } \\\hline \text { Direct materials } & \$ 45 \text { per unit } \\\hline \text { Direct labor } & \$ 30 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 55 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 480,000 \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 75 \text { per unit } \\\hline \text { ced selling and administration costs } & \$ 300,000 \text { per year } \\\hline\end{array}$
What is the unit product cost using variable costing?

A) $75
B) $85
C) $130
D) $174