Please explain how you arrived at your answers. Thank you.

Exercise 6-1 Variable and Absorption Costing Unit Product Costs [LO1] Shastri Bicycle of Bombay, India, produces an inexpensive, yet rugged, bicycle for use on the citys crowded streets that it sells for 909 rupees. (Indian currency is denominated in rupees, denoted by .) Selected data for the companys operations last year follow: Units in beginning inventory 0 Units produced 10,000 Units sold 6,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials 240 Direct labor 390 Variable manufacturing overhead 63 Variable selling and administrative 20 Fixed costs: Fixed manufacturing overhead - 960,000 Fixed selling and administrative - 560,000

Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one bicycle. (Round your intermediate and final answers to the nearest whole number. Omit the " " sign in your response.)

Unit product cost =

2. Assume that the company uses variable costing. Compute the unit product cost for one bicycle. (Omit the " " sign in your response.)

Unit product cost =