Tuesday, May 24, 2011

What are the variable costs per unit associated with Product ORD203?

ACCOUNTING

Multiple Choice

The West Company manufactures several different products. Unit costs associated with Product ORD203 are as follows:

Direct materials $ 40

Direct manufacturing labor 8

Variable manufacturing overhead 12

Fixed manufacturing overhead 23

Sales commissions (2% of sales) 6

Administrative salaries 9

Total $98



What are the variable costs per unit associated with Product ORD203?

a. $60

b. $83

c. $66

d. $48

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