Pavelko Corporation has provided the following data for its two most recent years of operation:

Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$ 13
Direct labor	$ 5
Variable manufacturing overhead	$ 5
Fixed manufacturing overhead per year	$ 90,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$ 6
Fixed selling and administrative expense per year	$ 61,000

	Year 1	Year 2
Units in beginning inventory	0	1,000
Units produced during the year	10,000	9,000
Units sold during the year	9,000	8,000
Units in ending inventory	1,000	2,000

The unit product cost under absorption costing in Year 1 is closest to:

Multiple Choice

• $38.00

• $32.00

• $23.00

• $9.00