A company produced 10,000 units and reported the following costs: direct materials, $10 per unit; direct labor, $20 per unit; variable overhead, $10 per unit; and fixed overhead, $160,000 per year. Product cost per unit under variable costing is $40. True or False? Is it $40 or $56? Since 160000/10000=16; 10+20+10+16= 56