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Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation: Number of units produced 7,000 Variable

Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:

Number of units produced 7,000
Variable costs per unit:
Direct materials $ 86
Direct labor $ 71
Variable manufacturing overhead $ 2
Variable selling and administrative expenses $ 7
Fixed costs:
Fixed manufacturing overhead $ 378,000
Fixed selling and administrative expenses $ 98,000

The company had no beginning or ending inventories.

Required:

a. Compute the unit product cost under absorption costing.

b. Compute the unit product cost under variable costing.

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