Bakker Corporation Has Provided the Following Production and Average Cost

question 35

Multiple Choice

Bakker Corporation has provided the following production and average cost data for two levels of monthly production volume.The company produces a single product. $\begin{array}{lrr}\text {Production volume }&4,000 \text { units } & 5,000 \text { units } \\\text {Direct materials }&\$ 89.70 \text { per unit } & \$ 89.70 \text { per unit } \\\text {Direct labor }&\$ 22.60 \text { per unit } & \$ 22.60 \text { per unit } \\\text { Manufacturing overhead}&\$ 70.50 \text { per unit } & \$ 60.30 \text { per unit }\end{array}$ The best estimate of the total variable manufacturing cost per unit is:

• A)$89.70
• B)$131.80
• C)$19.50
• D)$112.30

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