1. The Landes Excavating Company experienced the following costs in 2007:

   Direct materials $1.75/unit

   Direct labor $2.00/unit

   Variable manufacturing overhead $2.50/unit

   Variable selling $.75/unit

   Fixed manufacturing overhead $50,000

   Fixed selling $15,000

   Fixed administrative $5,000

   During the year the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65 what is the company's contribution margin per unit?

   	a.	$16.40
   	b.	$15.65
   	c.	$18.90
   	d.	$13.65

1. Hunziker Company uses weighted average process costing and has 9,000 equivalent units of production for direct material and 8,500 equivalent units of production for conversion costs in May. Costs were incurred in May as follows:

   	Direct Material	Conversion	Total
   Beginning WIP	$900	$1,500	$2,400
   Incurred during May	$12,600	15,500	$28,100
   Total	$13,500	$17,000	$30,500

   What is the total cost per equivalent unit for May?

   	a.	$1.74
   	b.	$1.50
   	c.	$2.00
   	d.	$3.50