Klotz Co. manufactures a dog shampoo called Cleanfur. Relevant data for Cleanfur in January 2013, the first month of production, are as follows:

Selling price

$26 per unit

Units

Produced 20,000; sold 15,000; beginning inventory zero

Variable manufacturing unit costs

$10

Fixed costs

Manufacturing overhead $140,000 Selling and administrative expenses $30,000

The per unit costs under both absorption and variable costing are:

Absorption

$10

$7

$7

$10

$17

$7

$17

$10