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Multiple Choice QuestionBrother Company uses variable costing. Their direct materials are $8, direct labor is $6 and total overhead is $5 of which $3 is variable. What is Brother Company's total unit cost?Multiple choice question.$19$17$14$13

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Multiple Choice QuestionBrother Company uses variable costing. Their direct materials are 8,directlaboris8, direct labor is 6 and total overhead is 5ofwhich5 of which 3 is variable. What is Brother Company's total unit cost?Multiple choice question.191917141413

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Solution

To calculate the total unit cost under variable costing, we only consider the variable costs. These include direct materials, direct labor, and variable overhead.

Here's how to calculate it:

  1. Direct materials: $8
  2. Direct labor: $6
  3. Variable overhead: $3

Add these three amounts together:

8(directmaterials)+8 (direct materials) + 6 (direct labor) + 3(variableoverhead)=3 (variable overhead) = 17

So, the total unit cost for Brother Company under variable costing is 17.Therefore,thecorrectansweris17. Therefore, the correct answer is 17.

This problem has been solved

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