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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

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 24,000 bags
Production 26,000 bags
Variable manufacturing cost per bag $ 2.80
Sales and distribution costs per bag $ 0.55
Total fixed manufacturing overhead $ 59,800
Fixed administrative overhead $ 22,000

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.)

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