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Brother Company uses variable costing. Their direct materials are $8, direct labor is $6 and total overhead is $5 of which $3 is variable. What is Brother Company's total unit cost

Answer :

If Brother Company uses variable costing. Brother Company's total unit cost is $17.

Total unit cost

Using this formula

Total unit cos=Direct materials+Direct labor+ Variable

Let plug in the formula

Total unit cost=$8+$6+$3

Total unit cost=$17

Therefore If Brother Company uses variable costing. Brother Company's total unit cost is $17.

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