Question

If 4,000 units are sold, the variable cost per unit sold is closest to:

Pedregon Corporation has provided the following information: 


cost per UnitCost per Period



Direct materials$6.35
Direct labor$3.75
Variable manufacturing overhead$1.50
Fixed manufacturing overhead
$15,000
Sales commissions$0.50
Variable administrative expense$0.55
Fixed selling and administrative expense
$4,500

If 4,000 units are sold, the variable cost per unit sold is closest to:

Multiple Choice 

  • $11.60 

  • $14.60 

  • $12.65 

  • $16.55


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Answer #1

Calculate variable cost per unit sold

Direct material 6.35
Direct labor 3.75
Manufacturing overhead 1.50
Sales commission 0.50
Variable administrative expense 0.55
Total variable cost per unit sold 12.65

So answer is c) $12.65

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