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 to a Canadian importer for $826. Selected data for the companys operations last year follow:

Units in beginning inventory		0
Units produced		20,000
Units sold		18,000
Units in ending inventory		2,000
Variable costs per unit:
Direct materials	$	290
Direct labour	$	330
Variable manufacturing overhead	$	51
Variable selling and administrative	$	25
Fixed costs:
Fixed manufacturing overhead	$	900,000
Fixed selling and administrative	$	610,000

Required:

1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.

unit product cost -

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

unit product cost -