The Direct material cost per unit is $8.70.
Given in the Question,
Total direct materials cost = $147,900
Fixed costs = $86,700
Units produced = 17,000 units.
Now, we will use the formula to find direct material cost per unit:
Direct material cost per unit is calculated as total direct material costs divided by units produced.
= Total direct materials costs ÷ Number of units produced
= $147,900 / 17,000
= $8.70.
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