Design Corporation produces a single product and has the following cost structure:
Number of units produced each year: 7,000
Variable costs per unit:
Direct materials: $77
Direct labor: $89
Variable manufacturing overhead: $5
Variable selling and administrative expense: $3
Fixed costs:
Fixed manufacturing overhead: $608,000
Fixed selling and administrative expense: $574,000
The unit product cost under absorption costing is:
a. $247
b. $258
c. $340
d. $332