EXERCISE 4-6 Variable and Absorption Costing Unit Product Costs and Income Statements LO 4-1. LO 4-2 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $6 $9 $3 $4 $300,000 $190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unit. Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. 2. Assume the company uses variable costing: a. Compute the unit product cost.