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Obama Company sells its product for $25 per unit. During 2012, it produced 20,000 units and sold 15,000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3. Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses. The per unit manufacturing cost under variable costing is
a) $12.
b) $27.
c) $29.50.
d) $32.
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Obama Company sells its product for $25 per unit. During 2012, it produced 20,000 units and sold 15,...
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