Exercise $6-3($Algo$)$ Income statement under absorption costing and variable costing LO P$1,$ P$2$

$[$The following information applies to the questions displayed below.$]$

Cool Sky reports the following for its first year of operations. The company produced $40,000$ units and sold $32,000$ units

at a price of $$150$ per unit.

Direct materials $,$$$66$ per unit

Direct labor $,$$$25$ per unit

Variable overhead $,$$$9$ per unit

Fixed overhead $,$$$520,000$ per year

Variable selling and administrative expenses $ $12$ per unit

Fixed selling and administrative expenses $$120,000$ per year

Exercise $6-3($Algo$)$ Part $1$a

$1$a$.$ Assume the company uses absorption costing. Determine its total product cost per unit.