RHO Company Began Its Operations on January 1 and Produces

Multiple Choice

RHO Company began its operations on January 1 and produces a single product that sells for $10.25 per unit. Standard capacity is 80,000 units per year. The 80,000 units were produced and 70,000 units were sold during the year. Manufacturing costs and selling and administrative expenses follow: What is the standard cost of manufacturing a unit of product?

A) $6.00
B) $6.50
C) $5.00
D) $5.50