Kates 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 the projections of Kates Kale Chips for the upcoming quarter:

Projections Sales 25,000 bags

Production 27,000 bags

Variable manufacturing cost per bag $ 3.00

Sales and distribution costs per bag $ 0.15

Total fixed manufacturing overhead $ 35,100

Fixed administrative overhead $ 23,000

Required:

1. Compute the projected product cost per bag produced under full costing.

2. Compute the projected product cost per bag under variable costing.

(Round your answers to 2 decimal places.)