Delaware Has Computed the Following Unit Costs for the Year

Multiple Choice

Delaware has computed the following unit costs for the year just ended: $$\begin{array} { l l } \text { Variable manufacturing overhead } & 85 \\\text { Fixed manufacturing overhead } & 20 \\\text { Variable selling and administrative cost } & 18 \\\text { Fixed selling and administrative cost } & 11\end{array}$$ Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing?

A) Variable, $85; absorption, $105.
B) Variable, $85; absorption, $116.
C) Variable, $103; absorption, $105.
D) Variable, $103; absorption, $116.
E) None of the other answers are correct.