The Jar Equipment Company manufactures lifting equipment. One order from the LGU Machine Works for $2,000$ lifting equipment showed the following costs per unit: direct materials, P$3\mathrm{.}50$; direct labor, P$1\mathrm{.}25$; and manufacturing overhead at $140\%$ of direct labor cost if defective work is charged to the job, $150\%$ if it is not.

Final inspection revealed that $100$ of the units were improperly manufactured. These units were disassembled, and properly manufactured. The per unit cost of correcting the defective products consists of $P0\mathrm{.}15$ for materials, $P0\mathrm{.}25$ for direct labor; and manufacturing overhead at the predetermined rate.

The cost per unit produced, assuming that the rework costs is charged to:

a$.$ P $6\mathrm{.}5375$

b$.$ P$6\mathrm{.}5375$

c$.$ P$6\mathrm{.}6250$

d$.$ P$7\mathrm{.}2500$

Factory Overhead Control

P$6\mathrm{.}8250$

P$6\mathrm{.}6250$

P$6\mathrm{.}5375$

P$7\mathrm{.}4000$