EXHIBIT 6-18 ShredCo Data $35 $10 $5 $2 Variable costs: Direct material cost per unit produced Direct labor cost per unit produced Variable MOH cost per unit produced Variable operating expenses per unit sold Fixed costs: Fixed MOH Fixed operating expenses Other information: Units produced Sales price per unit $1,000,000 $300,000 40,000 units $100 Exhibit 6-18 shows the most recent annual data for ShredCo., a maker of electronic paper shredders. It shows the inventoriable product cost of one unit under both absorption costing and variable costing. 1. Calculate inventoriable costs (manufacturing cost) under variable and absorption costing. Absorption Costing Variable Costing Manufacturing Costs Per Unit Direct materials cost per unit Direct labor cost per unit Variable MOH cost per unit Fixed MOH cost per unit Total cost per unit 2. Prepare income statements using variable and absorption costing