Final answer:
The cost per unit of manufacturing overhead for producing the rets is calculated by dividing the total fixed manufacturing overhead of $180,000 by the number of units produced. The correct answer for the cost per unit is $6.67 when based on the lowest production level in the range provided, which is 27,000 rets.
Step-by-step explanation:
To determine the cost per unit of manufacturing overhead for producing the rets, we need to divide the total fixed manufacturing overhead by the number of units produced. In this scenario, the fixed manufacturing overhead is $180,000 per year. The range of production is between 27,000 and 36,000 rets per year. Therefore, to find the cost per unit, we can calculate the overhead cost at the lowest production level of 27,000 units and at the highest production level of 36,000 units.
At 27,000 units:
Cost per unit = Total Overhead / Quantity of Output = $180,000 / 27,000 = $6.67
At 36,000 units:
Cost per unit = Total Overhead / Quantity of Output = $180,000 / 36,000 = $5. However, since $5 is not one of the options provided, we look to the previously calculated cost at the lower production level, which is $6.67.
Hence, the correct answer is (1) $6.67.