Pratt, Inc., produces a single product, which sells for $21.50. Pratt produced 60,000 units and sold 52,000 units last year. There were no beginning inventories or ending work in process inventories last year.

Manufacturing costs and marketing and administrative costs for last year were as follows

a. Compute the unit product (manufacturing) cost using variable costing.

b. Compute Pratt's operating profit using variable costing.

c. Compute operating profit using full-absorption costing.

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Variable Fixed Direct materials $390,000 - Direct labor 225,000 - Manufacturing overhead 90,000 $180,000 Marketing and administrative costs 69,120 120,000