Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year: What is Shun's absorption costing unit product cost for last year?

A) $4.10 per unit
B) $4.55 per unit
C) $5.85 per unit
D) $6.30 per unit

To calculate the absorption costing unit product cost, we need to add up all the manufacturing costs per unit:
Direct materials per unit: $1.10
Direct labor per unit: $0.75
Variable manufacturing overhead per unit: $0.70
Fixed manufacturing overhead per unit: $3.30 ($1,650,000/500,000 units)
Total absorption costing unit product cost: $5.85 per unit