At the Beginning of the Current Year,Peters Company Installed a JIT

Multiple Choice

At the beginning of the current year,Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products: $$\begin{array} { l r } \text { Theoretical annal capacity } & 2,000 \\\text { Actual production } & 1,800 \\\text { Production hours available } & 500 \\\text { Actual conversion cost per hour } & \$ 7\end{array}$$
- What is the ideal conversion cost per unit?

A) $0.9 per unit.
B) $1.75 per unit.
C) $25.50 per unit.
D) $28 per unit.