Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $917. Selected data for the company's operations last year follow:

Units in beginning inventory0

Units produced20,000Units sold16,000

Units in ending inventory4,000

Variable costs per unit:

Direct materials$180

Direct labor$520

Variable manufacturing overhead$46

Variable selling and administrative$21

Fixed costs:

Fixed manufacturing overhead$810,000

Fixed selling and administrative$410,000

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.