ACCOUNTING
Multiple Choice
Marie’s Decorating produces and sells a mantel clock for $100 per unit. In 20x1, 100,000 parts were produced and 80,000 units were sold. Other information for the year includes:
Direct materials $30.00 per unit
Direct manufacturing labor $ 2.00 per unit
Variable manufacturing costs $ 3.00 per unit
Sales commissions $ 5.00 per part
Fixed manufacturing costs $25.00 per unit
Administrative expenses, all fixed $15.00 per unit
What is the inventoriable cost per unit using variable costing?
a. $32
b. $35
c. $40
d. $60
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