SixthZ incurred the following costs during 2018: Variable costs treehouse Manufacturing: Direct Materials $500 Direct Labor $270 VMO $40 Variable Selling & Admin $75 Fixed costs per year Fixed Manufacturing Overhead $125,000 Fixed Selling & Admin $60,000 During the year, SixthZ produced 1,100 treehouses and sold 950 treehouses. The selling price of each set was $1,000. Assuming SixthZ uses variable costing, what is the unit product cost? $941.58 O $885 O $923.64 O $810

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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SixthZ incurred the following costs during 2018:
Variable costs
treehouse
Manufacturing:
Direct Materials
$500
Direct Labor
$270
VMO
$40
Variable Selling & Admin
$75
Fixed costs per
year
Fixed Manufacturing Overhead $125,000
Fixed Selling & Admin
$60,000
During the year, SixthZ produced 1,100 treehouses and sold 950 treehouses. The selling price of
each set was $1,000. Assuming SixthZ uses variable costing, what is the unit product cost?
O $941.58
O $885
O $923.64
O $810
Transcribed Image Text:SixthZ incurred the following costs during 2018: Variable costs treehouse Manufacturing: Direct Materials $500 Direct Labor $270 VMO $40 Variable Selling & Admin $75 Fixed costs per year Fixed Manufacturing Overhead $125,000 Fixed Selling & Admin $60,000 During the year, SixthZ produced 1,100 treehouses and sold 950 treehouses. The selling price of each set was $1,000. Assuming SixthZ uses variable costing, what is the unit product cost? O $941.58 O $885 O $923.64 O $810
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