McCann Mechanics, Compiled the Following Information for the Current Year

Multiple Choice

McCann Mechanics, compiled the following information for the current year: $\begin{array} { | l | r | } \hline \text { Variable manufacturing cost } & \$ 35 \\\hline \text { Fixed manufacturing cost } & 30 \\\hline \text { Variable selling and administrative } & 40 \\\text { cost } & \\\hline \text { Fixed selling and administrative cost } & 16 \\\hline\end{array}$ Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing?

A) Variable, $35; absorption, $65.
B) Variable, $35; absorption, $81.
C) Variable, $105; absorption, $105.
D) Variable, $105; absorption, $81.
E) Variable $35; absorption $105.