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 10, variable overhead 2. What is Hamilton Company's total unit cost?Multiple choice question.1520
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 10 (direct labor) + 18.
Therefore, the answer is $18.
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