Excerpt from Areojet Corporation: Per Unit Per Month Selling price $200,000 Direct materials 40,000 Direct labor 10,000 Variable manufacturing overhead 2,000 Fixed manufacturing overhead $140,000 Variable selling and administrative expenses 20,000 Fixed selling and administrative expenses 40,000 January February March Beginning inventory 0 0 3 Units produced 4 5 2 Units sold 4 2 5 Ending inventory 0 3 0 What is the unit product cost for the month of February, using the variable costin

Answer:Unit Product cost for the m/o February is $ 52000   Explanation:Given dataVariable Costing is costing method which assign only variable manufacturing cost to the inventory. All other expenses or cost are treated as period cost and are excluded from the cost of production. Direct Material = 40000Direct labor = 10000Variable Manufacturing Overhead = 2000Fixed Manufacturing overhead = 140000Variable Selling & Administrative Expenses = 20000Fixed Selling & Administrative Expenses = 40000Unit Product Cost  by Variable costing methods can be calculated as follows:Unit Product Cost for the M/O February = (Direct Material + Direct Labor + Variable manufacturing overhead )Unit Product cost for the m/o February= (40000 + 10000 + 2000) Unit Product cost for the m/o February =  52000