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

Multiple Choice

Allentown Aqua,Inc.has provided the following information for the year. $$\begin{array} { | l | r | } \hline \text { Units produced } & 9,000 \text { units } \\\hline \text { Sales price } & \$ 600 \text { per unit } \\\hline \text { Direct materials } & \$ 25 \text { per unit } \\\hline \text { Direct labor } & \$ 30 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 50 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 440,000 \text { per year } \\\hline \text { Variable selling and administration costs } & \$ 75 \text { per unit } \\\hline \text { Fixed selling and administration costs } & \$ 240,000 \text { per year } \\\hline\end{array}$$ What is the unit product cost using variable costing?

A) $55
B) $80
C) $105
D) $154