Benton Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

Multiple Choice

Benton Company manufactures a part for its production cycle.The costs per unit for 38,000 units of the part are as follows:
$\begin{array}{ll}&\text { Per Unit }\\\text { Direct materials } & \$ 3.00 \\\text { Direct labor } & 5.00 \\\text { Variable factory overhead } & 3.00 \\\text { Fixed factory overhead } & \underline{4.00} \\\text { Total costs } & \$ 15.00\end{array}$
The fixed factory overhead costs are unavoidable.Assume no other use for the facilities.What is the highest price Benton Company should pay for the part from an outside supplier?

A) $8
B) $11
C) $12
D) $15