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Cuffee Inc., which produces a single product, has provided the following data for its most recent month of operation: |
| Number of units produced | 13,400 | |
| Variable cost per unit: | ||
| Direct materials | $ | 179 |
| Direct labor | $ | 64 |
| Variable manufacturing overhead | $ | 3 |
| Variable selling and administrative | $ | 8 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 683,400 |
| Fixed selling and administrative expenses | $ | 268,000 |
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The company had no beginning or ending inventories.
| Required: |
| a. |
Compute the unit product cost under absorption costing. (Omit the “$” sign in your response.) |
| Unit product cost | |
| Absorption costing | $ |
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| b. |
Compute the unit product cost under variable costing. (Omit the “$” sign in your response.) |
| Unit product cost | |
| Variable costing | $ |
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