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Kyle Corporation produces a single product and has the following cost structure:
Number of units produced each year: 1,000
Variable costs per unit:
Direct materials $41
Direct labor $36
Variable manufacturing overhead $ 4
Variable selling and administrative expenses $ 1
Fixed costs per year:
Fixed manufacturing overhead $46,000
Fixed selling and administrative expenses $60,000
Required:
1. Compute the unit product cost under absorption costing. Show your work!
2. Compute the unit product cost under variable costing. Show your work!
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