Question
9) Sanders Production expects to produce and sell 13,000 units of Big, its only product, for $20 each. Direct material cost is $3 per unit,
9) Sanders Production expects to produce and sell 13,000 units of Big, its only product, for $20 each. Direct material cost is $3 per unit, direct labor cost is $14 per unit, and variable manufacturing overhead is $10 per unit. Fixed manufacturing overhead is $26,000 in total. Variable selling and administrative expenses are $3 per unit, and fixed selling and administrative costs are $3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Sanders would be ________.
A) $17.00 per unit
B) $20.00 per unit
C) $29.00 per unit
D) $27.00 per unit
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