Jane LTD. produces covers for motorcycles. The covers are made from a special waterproof, rip-proof material with fasteners to secure the cover. In the budgeting process for the next year, management planned the following annual inventoriable product costs per cover:

10 meters of material $ 70

Velcro, elastic, and hooks $ 10

4.5 hours of direct labor $135

Fixed manufacturing costs (based on planned production of 500 covers) $120

As they were completing the current year of operations, the management team realized their planned production should be decreased to 400 units.

What is the appropriate unit cost to use when planning for the new year?

a) $ 80

b) $215

c) $335

d) $365