Question 3

Baughn Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	115
Units in beginning inventory		0
Units produced		6,600
Units sold		6,400
Units in ending inventory		200

Variable costs per unit:
Direct materials	$	26
Direct labor	$	46
Variable manufacturing overhead	$	7
Variable selling and administrative expense	$	9
Fixed costs:
Fixed manufacturing overhead	$	105,600
Fixed selling and administrative expense	$	51,200

What is the unit product cost for the month under absorption costing?

		$79 per unit
		$95 per unit
		$104 per unit
		$88 per unit