Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume 5,000 units 6,000 units
Direct materials $ 103,500 $ 124,200
Direct labor $ 282,500 $ 339,000
Manufacturing overhead $ 667,000 $ 679,800
The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.)
a. $90.00
b. $77.20
c. $12.80
d. $20.70
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