Dancing Diva produced 115,000 units this year and sold 110,000 units. The following costs were incurred:

• Direct materials $517,500
• Direct labor $1,840,000
• Variable overhead $805,000
• Fixed overhead $400,000
• Sales Commissions $550,000
• Fixed Selling Expenses $80,000
• Fixed Administrative Expenses $300,000

Each unit sells for $40 each. Calculate the production cost per unit under the VARIABLE costing method and Absorption costing method.

Dancing Diva produced 115,000 units this year and sold 110,000 units. The following costs were incurred: Direct materials $517,500 Direct labor $1,840,000 Variable overhead $805,000 Fixed overhead $400,000 Sales Commissions $550,000 Fixed Selling Expenses $80,000 Fixed Administrative Expenses $300,000 Each unit sells for $40 each. Calculate the production cost per unit under the VARIABLE costing method and Absorption costing method. 1}