RHO Company began its operations on January 1 and produces a single product that sells for $10.25 per unit. THe standard capacity is 80,000 units per year. During the year, 80,000 units were produced and 70,000 untis were sold. Manufacturing costs and selling and administrative expenses follow:

Fixed Variable

Raw Materials 2.50 pu produced

Direct labor 1.50 pu produced

Facroty overhead 120,000 1.00pu produced

Selling and admin 80,000 .5 pu sold

What is the standard cost of manufacturing a unit of product?

6.00

6.50

5.00

5.50