Gabe's Auto produces and sells an auto part for $30.00 per unit. In 20X2, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:

Direct materials $12.00 per unit

Direct manufacturing labour $2.25 per unit

Variable manufacturing overhead costs $0.75 per unit

Sales commissions $3.00 per part

Fixed manufacturing overhead costs $375,000 per year

Administrative expenses, all fixed $135,000 per year

1) What is the inventoriable cost per unit using variable costing?

A.

$15.00

B.

$18.75

C.

$20.10

D.

$14.25

2) What is the inventoriable cost per unit using absorption costing?

A.

$20.10

B.

$18.75

C.

$15.00

D.

$14.25