B & B Manufacturing
B & B Manufacturing Produces a Single

Multiple Choice

B & B Manufacturing
B & B Manufacturing produces a single product. Last year, the company produced 10 000 units out of which 9500 were sold. There were no units in beginning inventory. The company had the following costs:
$\begin{array}{cr}\underline{\text { Variable costs per unit: }}\\\text { Production } & \$ 6.00 \\\text { Selling and administrative } & \$ 2.00 \\\underline{\text { Fixed costs (total) :} } & \\ \text { Production } & \$ 15000 \\\text { Selling and administrative } &\$ 10000 \end{array}$
-What is the unit product cost using absorption costing?

A) $ 8.00
B) $ 6.00
C) $ 7.50
D) $10.50