1 pc QUESTION 3 RHO Company began its operations on January 1 and produces a single product that sells for $10.25 per unit. Standard capacity is 80,000 units per year. The 80.000 units were produced and 70,000 units were sold during the year. Manufacturing costs and selling and administrative expenses follow: Fixed Costs Variable Costs Raw materials $3.00 per unit produced Direct labor 1.50 per unit produced Factory overhead $120,000 1.00 per unit produced Selling and administrative 80,000 .50 per unit sold What is the standard cost of manufacturing a unit of product? a. $7.00 b. $5.50 c. $6.00 d. $6.50