Reference no: EM132527154

Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:

Number of units produced 13,200

Variable costs per unit:

Direct materials                                       $169

Direct labor                                              $80

Variable manufacturing overhead                   $5

Variable selling and administrative expenses     $13

Fixed costs:

Fixed manufacturing overhead                     $765,600

Fixed selling and administrative expenses        $277,200

• The company had no beginning or ending inventories.

Required:

Question a. Compute the unit product cost under absorption costing.

Question b. Compute the unit product cost under variable costing.