Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from Kate's Kale Chips's projections for the upcoming quarter:

ProjectionsSales23,000bags

Production 25,000bags

Variable manufacturing cost per bag $2.60

Sales and distribution costs per bag $0.45

Total fixed manufacturing overhead $52,500

Fixed administrative overhead $21,000

Required:1.Compute the projected product cost per bag produced under absorption costing.(Do not round your intermediate calculations. Round your answer to 2 decimal places.)

2.Compute the projected product cost per bag under variable costing.(Round your final answer to 2 decimal places.)