Exercise $7-1($Algo$)$ Variable and Absorption Costing Unit Product Costs $[$L$07-1]$

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for

$$871.$ Selected data for the company's operations last year follow:

Required:

Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. $($Round your intermediate

calculations and final answer to the nearest whole dollar amount.$)$

Assume that the company uses variable costing. Compute the unit product cost for one gamelan.Exercise $7-1($Algo$)$ Variable and Absorption Costing Unit Product Costs $[$LO$7-1]$

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $$871.$ Selected data for the company$$s operations last year follow:

Units in beginning inventory $0$

Units produced $11,000$

Units sold $8,000$

Units in ending inventory $3,000$

Variable costs per unit:

Direct materials $ $220$

Direct labor $ $390$

Variable manufacturing overhead $ $52$

Variable selling and administrative $ $18$

Fixed costs:

Fixed manufacturing overhead $ $980,000$

Fixed selling and administrative $ $810,000$

Required:

$1.$ Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. $($Round your intermediate calculations and final answer to the nearest whole dollar amount.$)$

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