8. Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations:

 

Number of units produced	6,900
Variable costs per unit:
Direct materials	$ 139
Direct labor	$ 126
Variable manufacturing overhead	$ 7
Variable selling and administrative expense	$ 12
Fixed costs:
Fixed manufacturing overhead	$248,400
Fixed selling and administrative expense	$538,200

 

There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

A. $308 per unit

B. $272 per unit

C. $265 per unit

 

9. Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

 

Selling price	$115
Units in beginning inventory	0
Units produced	6,500
Units sold	6,200
Units in ending inventory	300

 

Variable costs per unit:
Direct materials	$16
Direct labor	$46
Variable manufacturing overhead	$10
Variable selling and administrative expense	$10
Fixed costs:
Fixed manufacturing overhead	$175,500
Fixed selling and administrative expense	$ 25,200

 

What is the unit product cost for the month under variable costing?

A. $72 per unit

B. $99 per unit

C. $109 per unit