Wyatt Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material $3.00 per unit Direct labor 2.50 per unit Variable manufacturing overhead 1.80 per unit Fixed manufacturing overhead 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses .25 per unit Fixed SG&A expense $75,000 per year During its
first year of operations Wyatt manufactured 51,000 units and sold 48,000 . The selling price per unit was $25 . All costs were equal to standard. Refer to Wyatt Corporation. Under variable costing, the standard production cost per unit for the current year was
a. $11.30.
b. $7.30.
c. $7.55.
d. $11.55.
B
DM + DL + VOH = Standard Production Cost per Unit
$3.00 + $2.50 + $1.80 = $7.30
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