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22 May, 00:47

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price$119 Units in beginning inventory 0 Units produced 6,550 Units sold 6,250 Units in ending inventory 300 Variable costs per unit: Direct materials$17 Direct labor$47 Variable manufacturing overhead$11 Variable selling and administrative expense$11 Fixed costs: Fixed manufacturing overhead$176,850 Fixed selling and administrative expense$25,500 What is the unit product cost for the month under variable costing

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  1. 22 May, 03:43
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    Product cost = $75

    Explanation:

    Giving the following information:

    Variable costs per unit:

    Direct materials $17

    Direct labor $47

    Variable manufacturing overhead $11

    Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and unitary variable overhead:

    Product cost = 17 + 47 + 11 = $75
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