The Following Information Refers to the Cowan Company's Past Year

Multiple Choice

The following information refers to the Cowan Company's past year of operations.
*Common overhead totals $50,000 and is divided equally between the two products.
**Common fixed selling totals $60,000 and is divided equally between the two products.
Budgeted fixed overhead for the year of $180,000 equalled actual fixed overhead. Fixed overhead is assigned to products using a plant-wide rate based on expected direct labour hours, which were 150,000. The company had 5,000 of Product B in inventory at the beginning of the year. These units had the same unit cost as the units produced during the year.
-The unit product cost for Product A using variable costing is

A) $2.00.
B) $2.15.
C) $2.45.
D) $2.60.