Vijay company reports the following information regarding its production costs. direct materials $ 10 per unit direct labor $ 20 per unit overhead costs for the year variable overhead $ 10 per unit fixed overhead $ 160,000 units produced 20,000 unitscompute the production cost per unit under variable costing.

$40 production cost under variable costing.

Explanation:

In order to solve this you just have to know the options and the properties that Variable Costing includes:

Variable costing includes:

Direct materials.

Direct labor.

Variable overhead.

So this costs are the ones that need to be added in order to calculate the production cost under variable costing:

Variable overhead: $10

Direct Materials: $10

Direct labor: $20

Total production cost: $40

So the production cost under variable costing: $40

answerup to (3) three years;