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During May, Kern Co. produced and sold 10,000 units of a product. Manufacturing and selling costs incurred during May were as follows:

Direct materials and direct labor $200,000
Variable manufacturing overhead $45,000
Fixed manufacturing overhead $10,000
Variable selling costs $5,000

The product's unit cost under direct (variable) costing was:

a. $24.50

b. $25.00

c. $25.50

d. $26.00

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