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Question
Given the following data, calculate product cost per unit under variable costing.
| Direct labor | $7 per unit |
| Direct materials | $1 per unit |
| Overhead | |
| Total variable overhead | $20,000 |
| Total fixed overhead | $90,000 |
| Expected units to be produced | 40,000 units |
A. $8 per unit
B. $8.50 per unit
C. $10.25 per unit
D. $10.75 per unit
E. $12 per unit
Answer
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