Gregg Industries manufactures molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation costing system.

Gregg has an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the standard model is sold after this operation. During the trim operation, the arms are added to the deluxe and executive models and the chair edges are smoothed. Only the executive model enters the finish operation where the padding is added. All of the units produced are subject to the same steps within each operation, and no units are in process at the end of the period. The units of production and direct materials costs were as follows:

                 Units Produced Extrusion Materials Form Materials Trim Materials Finish Materials

Plastic sheets             5,000           $ 60,000         

Standard model           6,000             72,000        $24,000      

Deluxe model             3,000             36,000          12,000     $9,000   

Executive model          2,000             24,000            8,000      6,000         $12,000

                         16,000           $192,000         $44,000     $15,000        $12,000

Manufacturing costs applied during the month were:

                   Extrusion Operation Form Operation Trim Operation Finish Operation

Direct labor                  $152,000        $60,000       $30,000         $18,000

Factory overhead              240,000         72,000        39,000           24,000

The unit cost of a standard model is

A. $36.50

B. $96.30

C. $52.50

D. $69.30