Freshy Milk Company produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plant wide rate of $15 per direct labor hour. Direct labor wages average $6 an hour. Data for Job #3 for the year is: $30,000 $50,000 10,000 Direct materials Direct labor costs Dept. A Dept. B Machine hours used Dept. A Dept. B Units produced 300 hrs. 3,100 hrs. 34,000 units Compute the cost per unit. (Note: Round the unit cost to two decimal places.) a. $6.32 Ob. $7.06 c. $3.50 Od. $10.05 e. None of these choices are correct.

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