To determine the unit product cost under variable costing, we need to consider only the variable production costs, as variable costing excludes fixed manufacturing overhead in the calculation of unit product cost.

Step 1: Identify the variable production costs per unit

The variable production costs per unit include:

• Direct materials: $49
• Direct labor: $28
• Variable manufacturing overhead: $5

Step 2: Calculate the total variable production cost per unit

$\text{Variable cost per unit} = \text{Direct materials} + \text{Direct labor} + \text{Variable manufacturing overhead}$ $= 49 + 28 + 5 = 82$

Conclusion

Under variable costing, the unit product cost is $82 per unit.

Answer:

The correct choice is:

• $82 per unit

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Related Questions:

1. How would the unit product cost change if the variable manufacturing overhead increased?
2. What would be the unit product cost under absorption costing?
3. How do beginning and ending inventories affect variable costing calculations?
4. What impact does fixed manufacturing overhead have in absorption costing?
5. How does variable costing affect profit calculations compared to absorption costing?

Tip:

Remember, in variable costing, only variable costs directly tied to production are included in unit product cost, while fixed costs are treated as period expenses.