Excerpt from Andersen Corporation

Per Unit Per Month Selling price $ 70,000 Direct materials 14,000 Direct labor $ 29,000 Fixed manufacturing overhead 43,500 Fixed selling and administrative expenses 18,125

April May June Beginning inventory 0 0 10 Units produced 50 50 50 Units sold 50 40 60 Ending inventory 0 10 0

Assume that variable costing is used and that direct labor is treated as a variable cost. What is the variable cost of goods sold per unit?

• $781.60
• $1,730.00
• $14,580.00
• $15,450.00