Reference no: EM132768753

Super Bike Manufacturing Company presents the following data for year 2016:

Opening inventory: 0 Units
Sales: 8,000 Units
Production: 10,000 Units
Closing inventory: 2,000 Units
Direct materials: $240
Direct labor: $280
Variable manufacturing overhead expenses: $100
Variable selling and administrative expenses: $40
Fixed manufacturing overhead expenses: $1200,000
Fixed selling and administrative expenses: $800,000

Required:

Problem 1: Using the data given above, compute the unit product cost of one bike under:

1. absorption costing system.
2. variable costing system.