QUESTION 23

1. Western Corporation

   Western Corporation has the following standard costs associated with the manufacture and sale of Product 361.

   Direct Material	$2.00 per unit
   Direct Labor	$2.00 per unit
   Variable Manufacturing Overhead	$1.00 per unit
   Fixed Manufacturing Overhead	$200,000
   Standard Capacity	50,000 units per year
   Variable Selling Expenses	$1.00 per unit
   Fixed Selling, General and Administrative Expenses	$75,000 per year

   During its for year of operations, Western manufactured 52,000 units and sold 49,000 units. The selling price per unit was $30.

   Under variable costing, what was the standard cost per unit?

   	a.	$4.00
   	b.	$5.00
   	c.	$9.00
   	d.	$9.75