Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

The unit cost of a product is made up of the following items: direct materials $30$, direct labour $25$, variable manufacturing overhead $20$, fixed manufacturing overhead $18$, sales commission ($1.5\%$ of sales) $4$, and administrative staff salaries $15$. What is the total variable cost per unit for the product?

  • A$75$
  • B$79$
  • C$94$
  • D$97$

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