Coed Novelties manufactures key chains for college bookstores. During 2003, the company had the following costs:
Direct materials used $ 31,000
Direct labor 18,000
Factory rent 12,000
Equipment deprecation – factory 2,000
Equipment depreciation – office 750
Marketing expense 2,500
Administrative expenses 40,000
35,000 units produced were in 2003. What is the product cost per unit?
a. approximately $1.24
b. $1.80
c. approximately $3.04
d. $1.40
e. approximately $1.82