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Bakker 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 | 8,500 | units | 9,500 | units |
| Direct materials | $97.70 | per unit | $97.70 | per unit |
| Direct labor | $27.60 | per unit | $27.60 | per unit |
| Manufacturing overhead | $72.30 | per unit | $68.30 | per unit |
The best estimate of the total variable manufacturing cost per unit is:
| $172.70 | |
| $159.60 | |
| $125.30 | |
| $166.00 |