Lynch Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations:

Variable costs per unit:

Manufacturing:

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9

Variable manufacturing overhead . . . . . . . . .. . . $ 3

Variable selling and administrative . . . . . . . . .. . $ 4

Fixed costs per year:

Fixed manufacturing overhead . . . . . . . . . . . . . . . . . $ 300,000

Fixed selling and administrative . . . . . . . . . . . . . . . . $ 190,000

During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the companys product is $ 50 per unit.

Required:

1. Assume that the company uses absorption costing and compute the unit product cost.

2. Assume that the company uses variable cost and compute the unit product cost.