Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $868. Selected data for the companys operations last year follow:

Units in beginning inventory0Units produced17,000Units sold14,000Units in ending inventory3,000Variable costs per unit: Direct materials$ 160Direct labor$ 470Variable manufacturing overhead$ 60Variable selling and administrative$ 16Fixed costs: Fixed manufacturing overhead$ 990,000Fixed selling and administrative$ 500,000

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.