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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
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