Tuesday, May 24, 2011

What are the variable costs per unit associated with Product ICT101?

ACCOUNTING

Multiple Choice

The Singer Company manufactures several different products. Unit costs associated with Product ICT101 are as follows:

Direct materials $ 60

Direct manufacturing labor 10

Variable manufacturing overhead 18

Fixed manufacturing overhead 32

Sales commissions (2% of sales) 4

Administrative salaries 16

Total $140



What are the variable costs per unit associated with Product ICT101?

a. $18

b. $22

c. $88

d. $92

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