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Question - Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $115
Units in beginning inventory 0
Units produced 6,600
Units sold 6,400
Units in ending inventory 200
Variable costs per unit: Direct materials $26
Direct labor $46
Variable manufacturing overhead $7
Variable selling and administrative expense $9
Fixed costs: Fixed manufacturing overhead $105,600
Fixed selling and administrative expense $51,200
Required - What is the unit product cost for the month under variable costing?
1. $88 per unit
2. $104 per unit
3. $95 per unit
4. $79 per unit
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