A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per unit, Direct labor, $6 per unit, Variable overhead, $70,000, and Fixed overhead, $120,000. The total product cost per unit under absorption costing is:
A. $35 per unit.
B. $17 per unit.
C. $16 per unit.
D. $28 per unit.
E. $23 per unit.
Answer: A
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