Under absorption costing, a company had the following unit costs when 12,500 units were produced.

Direct labor	$ 10.75 per unit
Direct material	$ 11.25 per unit
Variable overhead	$ 9.00 per unit
Fixed overhead ($150,000 / 12,500 units)	$ 12.00 per unit
Total production cost	$ 43.00 per unit

Compute the total production cost per unit under variable costing if 62,500 units had been produced.

$34.00

$33.40

$31.00

$22.00

$43.00