QUESTION 5 Lucy Sportswear manufactures a specialty line of T-shirts using a job order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials $13,700, direct labour $4,800, administrative $1,400, and selling $5,600. Factory overhead was allocated at the rate of $25 per machine hour and Job ICU2 required 800 machine hours. If Job ICU2 resulted in 7,000 good shirts, the cost of goods sold (i.e., absorption product cost) per unit would be: A. $6.50 B. $5.50 C. $5.70 D. $6.30