Muscle Machine Shop manufactures lifting equipment. One order from Simmer's World for 200 lifting equipment showed the following costs per unit:

Materials 400

Labor 175

Factory overhead, 160% of direct labor cost (150% in cases in which any defective unit costs are to charged to a specific order)

1. Assuming cost of defective units is charged to all the jobs, what is the unit cost of finished goods?

2. Assuming cost of defective units is charged to the job order, what is the unit cost of each unit manufactured?