Estimate of the total variable manufacturing cost per unit

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Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

Production Volume............................................... 4,500 units 5,500 units

Direct material......................................................... $88.00/unit $88.00/unit

Direct labor .......................................................... $35.00/unit $35.00/unit

Manufacturing overhead.......................................... $70.00/unit $66.00/unit

The best estimate of the total variable manufacturing cost per unit is:

a. $171.00

b. $175.00

c. $151.00

d. $189.00

e. None of the above

Reference no: EM131250432

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