DMF Ltd manufactures smoke detectors and the following information is available for Model DMF/04:

Per unit	Total direct cost	5
	Selling price	15
	Machine hours: Production	0.5
	Direct labour hours: Inspection & Packing	0.1

The following absorption rates are in use by the company:

Production:	4 per machine hour
Inspection & Packing:	10 per direct labour hour

What will be the cost per unit of Model DMF/04 for inventories valuation purposes in the company's published financial statements?

A.

10

B.

7

C.

8

D.

11