Western Corporation

Western Corporation has the following standard costs associated with the manufacture and sale of Product 361.

Direct Material	$2.00 per unit
Direct Labor	$2.00 per unit
Variable Manufacturing Overhead	$1.00 per unit
Fixed Manufacturing Overhead	$200,000
Standard Capacity	50,000 units per year
Variable Selling Expenses	$1.00 per unit
Fixed Selling, General and Administrative Expenses	$75,000 per year

During its for year of operations, Western manufactured 52,000 units and sold 49,000 units. The selling price per unit was $30.

Under absorption costing, what was the standard cost per unit?

	a.	$4.00
	b.	$5.00
	c.	$9.00
	d.	$9.75