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Answer the Following Questions Using the Information Below:
the Mt

Question 108

Multiple Choice

Answer the following questions using the information below:
The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows:
 Direct materials $60 Direct manufacturing labour 10 Variable manufacturing overhead 18 Fixed manufacturing overhead 32 Sales commissions (2% of sales)  4 Administrative salaries 16 Total $140\begin{array} { l r } \text { Direct materials } & \$ 60 \\\text { Direct manufacturing labour } & 10 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 32 \\\text { Sales commissions (2\% of sales) } & 4 \\\text { Administrative salaries } & \underline { 16 } \\\quad \text { Total } & \$ 140\end{array}
-What are the variable costs per unit associated with Product SK2040?


A) $88
B) $22
C) $18
D) $92

Correct Answer:

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