During May, KIA 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