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Multiple Choice QuestionHamilton Company has decided to use variable costing and has identified the following costs: direct materials $5, direct labor $10, variable overhead $3, fixed overhead $2. What is Hamilton Company's total unit cost?Multiple choice question.$18$15$5$20

Question

Multiple Choice QuestionHamilton Company has decided to use variable costing and has identified the following costs: direct materials 5,directlabor5, direct labor 10, variable overhead 3,fixedoverhead3, fixed overhead 2. What is Hamilton Company's total unit cost?Multiple choice question.1818155520

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Solution

To calculate the total unit cost, we need to add up all the variable costs.

Here are the costs given:

  • Direct materials: $5
  • Direct labor: $10
  • Variable overhead: $3

Fixed overhead is not included in variable costing, so we don't need to consider the $2 fixed overhead.

So, the total unit cost is 5(directmaterials)+5 (direct materials) + 10 (direct labor) + 3(variableoverhead)=3 (variable overhead) = 18.

Therefore, the answer is $18.

This problem has been solved

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