Solution-Calculate the unit variable cost under variable

Calculate the unit variable cost under variable costing

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Question - Buttons Company produces three products: LMC, DMC, and KPC. For the coming year, they expect to produce 160,000 units. Of these, 65,000 will be LMC; 40,000 will be DMC; and 55,000 will be KPC. The following information was provided for the coming year:

	1st LMC	2nd DMC	3rd KPC
Price	$550	$860	$625
Unit direct materials	250	405	300
Unit direct labor	180	210	205
Unit variable overhead	60	72	55
Unit variable selling expense	45	60	58
Total direct fixed overhead	240,000	425,000	400,000

Common fixed overhead is $984,000 and fixed selling and administrative expenses for Mario Co. is $881,000 per year.

Required -

A. Calculate the unit variable cost under variable costing.

B. Calculate the unit variable product cost.

C. A segmented variable-costing income statement for next year.

D. Should Buttons Company keep all product lines?

Reference no: EM132786489

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Calculate the unit variable cost under variable costing

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