Exercise 2 (Variable and Absorption Costing Unit Product Costs) Super Bicycle produces an inexpensive yet rugged bicycle for P5,000. Selected data for the company's operations last year follow: Units in beginning inventory.... Units produced......... Units sold......... 0 10,000 8,000 2,000 Units in ending inventory... Variable costs per unit Direct material........... P1,200 Direct labor....... 1,400 Variable manufacturing overhead.. 500 Variable selling and administrative.. 200 Fixed costs: Fixed manufacturing overhead. P6,000,000 P4,000,000 Fixed selling and administrative.. 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.