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Sena (Pty) Ltd, which manufactures a single product, has provided the following information for March 2019:

Selling price per unit: R 150

Units in opening inventory: Nil

Units manufactured: 9500

Units sold: 9250

Variable cost per unit:

Direct materials: R 30

Direct labour: R 45

Variable manufacturing overhead: R 18,40

Variable selling and admin: R 13,20

Fixed costs:

Fixed manufacturing overheads: R 97 850

Fixed selling and admin: R 31 500

The unit product costs for March 2019 using the marginal costing method:


R 75


R93,40


R106,60


R103,70

1 answer

To calculate the unit product cost using the marginal costing method (also known as variable costing), you only include variable costs in the calculation of the product cost. This means we need to add up the variable costs associated with manufacturing each unit.

Here's a breakdown of the variable costs provided:

  1. Direct materials: R 30
  2. Direct labor: R 45
  3. Variable manufacturing overhead: R 18.40

Total Variable Manufacturing Cost per Unit: \[ \text{Total Variable Cost per Unit} = \text{Direct Materials} + \text{Direct Labour} + \text{Variable Manufacturing Overhead} \] \[ = R 30 + R 45 + R 18.40 = R 93.40 \]

Thus, the unit product cost for March 2019 using the marginal costing method is R 93.40.

So, the answer is: \[ \text{R } 93.40 \]