Susan Is Currently Working on Assembling Some Numbers for Her

Multiple Choice

Susan is currently working on assembling some numbers for her client's cost accounting practices for the current year. The client is a factory that produces condiments including ketchup and mustard. They use traditional costing, and Susan would like to calculate total cost per unit. They have the following costs (same for both condiments) : Direct Materials (DM) , $87,444; Direct Labor (DL) , $96,782; and their Manufacturing Overhead (MOH) will be 88% of their DL cost. They produced 42,760 units of ketchup and 53,990 units of mustard during the period. What is their total cost per unit for mustard?

A) $4.99
B) $5.20
C) $6.30
D) $6.57