Question 1.3 (Total: 15 marks)

Springer Energy Inc. produces food products for people active in sports. The following budgeted volume and costs has been provided for one of their post-workout beverages:

Budgeted production	65,000 units
Selling price	$4.00 per unit
Direct material costs	$1.30 per unit
Direct labour costs	$0.20 per unit
Fixed manufacturing costs	$19,500
Variable manufacturing costs	$0.25 per unit
Variable administrative costs	$0.01 per unit
Fixed administrative costs	$3,900

Required

What is the inventoriable cost per drink under each of the following methods?

1. absorption costing
2. variable costing
3. throughput costing