Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit$97Budgeted unit sales (all on credit): January 10,000February 12,000March 13,300April 15,200? Raw materials requirement per unit of output 4poundsRaw materials cost$1.00per poundDirect labor requirement per unit of output 2.5direct labor-hoursDirect labor wage rate$23.00per direct labor-hourPredetermined overhead rate (all variable)$9.00per direct labor-hourVariable selling and administrative expense$3.10per unit soldFixed selling and administrative expense$70,000per month?Credit sales are collected: 30% in the month of the sale 70% in the following month?Raw materials
purchases are paid: 30% in the month of purchase 70% in the following month?The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.?The estimated unit product cost is closest to:
A. $61.50
B. $84.00
C. $22.50
D. $70.50
Answer: B
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