Question: Plummer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 44 Manufacturing costs: Variable manufacturing
Plummer Corporation has provided the following data for its two most recent years of operation:
| Selling price per unit | $ | 44 |
| Manufacturing costs: | ||
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 9 |
| Direct labor | $ | 6 |
| Variable manufacturing overhead | $ | 4 |
| Fixed manufacturing overhead per year | $ | 63,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 5 |
| Fixed selling and administrative expense per year | $ | 66,000 |
| Year 1 | Year 2 | ||||
| Units in beginning inventory | 0 | 2,000 | |||
| Units produced | 9,000 | 7,000 | |||
| Units sold | 7,000 | 8,000 | |||
| Units in ending inventory | 2,000 | 1,0000 | |||
The unit product cost under variable costing in Year 1 is closest to:
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