EXERCISE $6-1$ Variable and Absorption Costing Unit Product Costs $[$LO$1]$

Shastri Bicycle of Bombay, India, produces an inexpensive, yet rugged, bicycle for use on the city's crowded streets that it sells for $500$ rupees. $($Indian currency is denominated in rupees, denoted by R$.)$ Selected data for the company's operations last year follow:

Required:

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

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