Exercise $6-1($Algo$)$ Variable and Absorption Costing Unit Product Costs $[$LO$6-1]$

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $$735.$ Selected data for the company$$s operations last year follow:

Units in beginning inventory $0$

Units produced $14,000$

Units sold $11,000$

Units in ending inventory $3,000$

Variable costs per unit:

Direct materials $ $140$

Direct labor $ $380$

Variable manufacturing overhead $ $54$

Variable selling and administrative $ $22$

Fixed costs:

Fixed manufacturing overhead $ $720,000$

Fixed selling and administrative $ $880,000$

Required:

$1.$ Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. $($Round your intermediate calculations and final answer to the nearest whole dollar amount.$)$

$2.$ Assume that the company uses variable costing. Compute the unit product cost for one gamelan.