Kray Inc., which produces a single product, has provided the following data for its most recent month of operations:
Number of units produced 5,400
Variable costs per unit:
Direct materials$45
Direct labor$29
Variable manufacturing overhead$15
Variable selling and administrative expense$5
Fixed costs:
Fixed manufacturing overhead$378,000
Fixed selling and administrative expense$464,400
There were no beginning or ending inventories. The variable costing unit product cost was:
A. $159 per unit
B. $79 per unit
C. $89 per unit
D. $94 per unit
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