TB Problem Qu. 6-256 Murphy Inc., which produces a single ...

Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:

Number of units produced		16,000
Variable costs per unit:
Direct materials	$	152
Direct labor	$	73
Variable manufacturing overhead	$	5
Variable selling and administrative expenses	$	14
Fixed costs:
Fixed manufacturing overhead	$	960,000
Fixed selling and administrative expenses	$	320,000

The company had no beginning or ending inventories.

Required:

a. Compute the unit product cost under absorption costing.

b. Compute the unit product cost under variable costing.