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    bustamante71's Avatar
    bustamante71 Posts: 1, Reputation: 1
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    #1

    Jun 10, 2012, 03:14 PM
    Managorial Accounting variable costing unit product cost
    Corporation manufactures a gas operated barbecue grill. The following information relates to Charrd's operations for last year.

    Unit product cost under absorption costing $46 per unit
    Fixed manufactoring overhead cost for the year $300,000
    Fixed selling and administrative cost for the year $125,000
    Units (grills) produced and sold $25,000

    What is the variable costing unit product cost?

    Please show solution.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jun 10, 2012, 06:29 PM
    Quote Originally Posted by bustamante71 View Post
    Corporation manufactures a gas operated barbecue grill. the follwoing information relates to Charrd's operations for last year.

    Unit product cost under absorption costing $46 per unit
    Fixed manufactoring overhead cost for the year $300,000
    Fixed selling and adminstrative cost for the year $125,000
    Units (grills) produced and sold $25,000

    What is the variable costing unit product cost?

    Please show solution.
    now if I could only figure out what a variable unit is sorry did I say that aloud

    unit cost is derived by dividing the total of variable plus fixed cost by the number of units produced

    multiply the unit cost by the units produced deduct the fixed cost and divide by the number of units.


    so U*UC-FC/U

    really, a little thought please, you learn by doing not by having someoneelse do it
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