Bharat Bicycle, located in India, produces an inexpensive yet rugged bicycle for use on crowded city streets. The company sells the bicycle for 650 rupees. (Indian currency is denominated in rupees, denoted by R.) Selected data for the company's operations last year follow:

Units in beginning inventory0

Units produced19,200

Units sold17,900

Units in ending inventory1,300

Variable costs per unit:

Direct materialsR153

Direct labourR237

Variable manufacturing overheadR68

Variable selling and administrativeR49

Fixed costs:

Fixed manufacturing overheadR921,600

Fixed selling and administrativeR614,400

Required:1.Assume that the company uses absorption costing. Compute the unit product cost for one bicycle.

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