Columbo, Inc. has the following cost data: $20 per unit Direct Materials $40 per unit Direct Labor $5 per unit $500,000 for the period Variable Factory Overhead Fixed Factory Overhead Variable Selling & Administrative $15 per unit $60,000 for the period Fixed Selling & Administrative Evaluate the following statements: 1. If Columbo uses absorption costing, produces 20,000 units and sells 5,000 units, the product cost is $165 per unit. 2. If Columbo uses absorption costing, produces 10,000 units and sells 4,000 units, the product cost is $115 per unit. 3. If Columbo uses variable costing, produces 50,000 units and sells 25,000 units, the product cost is $80 per unit. Both Statement #1 and #3 are true O Both Statement #1 and #2 are true O Only Statement #2 is true o Only Statement #1 is true O All of the Statements are true Only Statement #3 is true Both Statement #2 and #3 are true