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

Multiple Choice

At the beginning of the current year,Smith Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products. $\begin{array}{lr}\text { Theoretical annual capacity } & 4,000 \\\text { Actual production } & 3,600 \\\text { Production hours available } & 2,000 \\\text { Actual cost per unit } & \$ 28\end{array}$

-What is the ideal conversion cost per unit?

A) $14 per unit
B) $15.55 per unit
C) $50.90 per unit
D) $56 per unit