Hoosier company manufactures and sells a single product the

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Hoosier Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations.

  • Variable Costs
  • Direct Materials $6
  • Direct Labor $6
  • Variable Overhead $3
  • Fixed Costs
  • Fixed Manufacturing OH $275,000
  • Fixed Selling Expenses $170,000


During the year the company produced 25,000 units and sold 20,000 units. The company's selling price is $50 per unit.
Under variable costing, what would Hoosier's unit product cost be?

Reference no: EM13598532

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