Variable cost per unit is calculated by adding direct material, direct labor, overhead and selling cost per unit. The variable cost does not remain fixed with the change in level of activity.it changes with the change in the level of the activity. Fixed cost remains fixed with the change in the level of activity. To determine: In the given question, we have to compute following: 1. Variable cost per unit 2. Mark up percentage on Variable cost 3. Product’s selling price using variable cost method

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Chapter 25, Problem 29E

To determine

Variable cost per unit is calculated by adding direct material, direct labor, overhead and selling cost per unit.

The variable cost does not remain fixed with the change in level of activity.it changes with the change in the level of the activity. Fixed cost remains fixed with the change in the level of activity.

To determine:

In the given question, we have to compute following:

1. Variable cost per unit

2. Mark up percentage on Variable cost

3. Product’s selling price using variable cost method

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