Sharko Corporation produces a single product and has the following cost structure:

Number of units produced each year is 8,000. Variable cost per unit for direct materials is $66, direct labor is $18, variable manufacturing overhead is $2 and variable selling and administrative expense is $3. Fixed costs for the year are fixed manufacturing overhead of $624,000 and fixed selling and administrative expense of $184,000.

The variable costing unit product cost is:

• a. $89
• b. $86
• c. $164
• d. $87