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Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. There are no spending or efficiency variances. Other information for the month includes:
Direct labor costs$10.00 per unit
Direct material costs$20.00 per unit
Variable manufacturing OH$5.00 per unit
Variable marketing costs$ 3.00 per unit
Fixed manufacturing OH$ 7.00 per unit
Administrative expenses, all fixed$15.00 per unit
Problem 1: What is cost of goods sold per unit using variable costing?
Group of answer choices
Option 1: $35
Option 2: $42
Option 3: $38
Option 4: $20
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