Calculate the unit variable cost for the following situation: Belham Company produces and sells disposable foil baking pans to retailers for $2.95 per pan. The variable cost per pan is as follows:
Line Item Description Cost
Direct materials $0.33
Direct labor $0.61
Variable factory overhead $0.66
Variable selling expense $0.16
Fixed manufacturing cost totals $196,769 per year. Administrative cost (all fixed) totals $26,832.