Blue Sky Company reports the following for its first year of operations. The company produced 88,000 units and sold 72,000 units at a price of $280 per unit.

Direct materials	$ 120	per unit
Direct labor	$ 44	per unit
Variable overhead	$ 16	per unit
Fixed overhead	$ 1,056,000	per year
Variable selling and administrative expenses	$ 22	per unit
Fixed selling and administrative expenses	$ 210,000	per year

The total product cost per unit under absorption costing is $180 per unit.

True or false