Use This Information for Swan Company to Answer the Questions

Multiple Choice

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the activity rate for materials handling?

A) $1.50 per part
B) $3.75 per part
C) $7.50 per part
D) $2.50 per part