Estimate of the total variable manufacturing cost


Please assist with the given problem.

Belinda Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

production volume 1,000 units 3,000 units
Direct materials $30.90 per unit $30.90 per unit
Direct labor $40.20 per unit $40.20 per unit
Manufacturing overhead $64.60 per unit $33.80 per unit

The best estimate of the total variable manufacturing cost per unit is:

A) $89.50
B) $18.40
C) $71.10
D) $30.90

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Accounting Basics: Estimate of the total variable manufacturing cost
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