Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company’s operations last year follow:

Units in beginning inventory . . . . . . . . . . . . . . . . . . .     0

Units produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

Units sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

Units in ending inventory . . . . . . . . . . . . . . . . . . . . .    25

Variable costs per unit:

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . .     $100

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $320

Variable manufacturing overhead . . . . . . . . . . .        $40

Variable selling and administrative . . . . . . . . . .        $20

Fixed costs:

Fixed manufacturing overhead . . . . . . . . . . . . . $60,000

Fixed selling and administrative . . . . . . . . . . . . $20,000

Required:

1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.

2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.