The accounting records for DeSales Manufacturing Inc. included the cost information as follows, which relates to its first year of operations:
Direct materials: $60,000
Direct labor: $80,000
Fixed manufacturing overhead: $100,000
Variable manufacturing overhead: $22,000
Question Completion Status:
10 points
Margin for the year: 7% (Ignore selling and administrative expenses.)
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Cost per unit under variable costing: $60,000 + $80,000 + $22,000 = $160,000
Units produced: 10,000
Variable cost per unit: $160,000 / 10,000 = $16