Complete Noodle began manufacturing beef noodle soup in May of 2011. The noodles sell for $0.90 for a large package of noodle soup mix. Total variable production costs are $0.65 per package. Complete Noodle incurs monthly fixed manufacturing overhead costs of $26,400 and fixed selling and administrative cost of $15,000. On May 31, 2011 ending inventory was 9,000 soup packages. The May ending inventory has the same cost per soup package as the June packages produced. Assume Complete Noodle produced 220,000 soup packages in June. Complete Noodle sold 221,000 of the soup packages in June.

Requirements

1. Calculate the total absorption cost per soup package.

2. Calculate the total variable cost per soup package.