Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted fixed manufacturing costs for 2019:

Budgeted Fixed Days of Hours of

Denominator-Level Manufacturing Production Production Boxes

Capacity Concept Overhead per Period per Period per Day per Hour

Theoretical capacity $4,000,000 362 22 300

Practical capacity $4,000,000 310 16 250

Normal capacity $4,000,000 310 16 175

Master budget capacity $4,000,000 310 16 200

Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Actual variable manufacturing costs were $1,762,200 (there are no variable cost variances). Actual fixed manufacturing overhead costs were $4,000,000, the same as budgeted. What is the total cost per unit (box of wine) when practical capacity is used?

a.

$3.45

b.

$5.01

c.

$5.81

d.

$6.39