Max Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable cost per unit: Production: Direct Materials Direct Labor Variable Mfg. Overhead 18 7 2 Variable selling & Admin 5 Fixed Costs per year: Fixed Manufacturing overhead 160,000 110,000 Fixed Selling & Admin During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company's product is 50 per unit. Required: 1. Compute the cost per unit of product using absorption costing method 2. Compute the net income under absorption costing method 3. Compute for the cost of ending inventory under absorption costing method LEARNING ACTIVITY 2: VARIABLE COSTING METHOD Max Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable cost per unit: Production: Direct Materials 18 Direct Labor 7 Variable Mfg. Overhead 2 Variable selling & Admin 5 Fixed Costs per year: Fixed Manufacturing overhead 160,000 110,000 Fixed Selling & Admin During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company's product is 50 per unit. Required: 1. Compute the cost per unit of product using variable costing method 2. Compute the net income under variable costing method 3. Compute for the cost of ending inventory under variable costing method