Reference no: EM131912695

A small company that produces a single product has the following cost structure:

Number of units produced is 6,000

Direct Materials is $2.00 per unit

Direct Labor is $4.00 per unit

Variable Manufacturing overhead is $1.00 per Unit

Variable selling and Administrative Expenses is $3.00 per unit

Manufacturing Overhead is fixed for $30,000 per year

Selling and Administrative Expenses is $10,000 per year fixed

1.) Compute the unit product cost under absorption costing method.

2.) Compute the unit product cost under variable/marginal costing method.