Calculate the cost per unit under variable costing

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Question - The accounting records for Eisenhower Manufacturing Company disclosed the following cost information for the current year:

Direct materials$30,000

Direct labor$40,000

Fixed manufacturing overhead$50,000

Variable manufacturing overhead   $10,000

Assume the company produced 10,000 of inventory, sold 6,000 of these units in the current year. and that there was no beginning inventory. The cost per unit under variable and absorption costing would be, respectively:

A. $2.50 and $5.50

B. $7.00 and $5.00

C. $8.00 and $13.00

D. $9.50 and $15.00

Reference no: EM132195259

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