The Manoli Company has collected the following data for use in calculating product costs:

Activity Data: (expected and actual)

rug cleaners sweepers total

units produced 100,000 250,000 350,000

prime costs $200,000 $584,000 $784,000

direct labor hours 10,000 40,000 50,000

machine hours 20,000 10,000 30,000

number of setups 25 75 100

inspection hours 1,600 2,400 4,000

number of moves 140 160 300

Departmental Data: (expected and actual)

molding assembly total

direct labor hours

rug cleaners 5,000 5,000 10,000

sweepers 5,000 35,000 40,000

total 10,000 40,000 50,000

machine hours

rug cleaners 17,000 3,000 20,000

sweepers 3,000 7,000 10,000

total 20,000 10,000 30,000

overhead costs

machining $130,000 $ 40,000 $170,000

moving materials 50,000 40,000 90,000

setting up 80,000 20,000 100,000

inspecting products 30,000 40,000 70,000

total 290,000 $140,000 $430,000

1. Refer to Figure 4-10. What is the unit product cost for rug cleaners if a plantwide rate is used based on direct labor hours?

a. $11.00

b. $ 2.86

c. $ 5.40

d. $ 4.12