The Estimated Unit Costs for a Company to Produce and Sell

question 19

Multiple Choice

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows:
$$\begin{array} { l r } & \text { Estimated } \\\text { Cost Item } & \text { Unit Cost } \\\text { Direct material } & \$3 2 \\\text { Direct labor } & 20 \\\text { Variable manfacturing overhead } & 15 \\\text { Fixed manfacturing overhead } & 6 \\\text { Variable selling expenses } & 3 \\\text { Fixed selling expenses } & 4\end{array}$$
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What are the estimated prime costs per unit?

• A) $73
• B) $32
• C) $67
• D) $52