Produced and sold units:

Year 1 Year 2

Units produced 45,000 45,000

Units sold 40,000 50,000

Basic data (applicable for the two years):

Selling price $25

Direct materials per unit produced $4

Direct labor per unit produced $7

Variable manufacturing overhead per unit produced $1

Fixed manufacturing overhead per year $270,000

Variable selling and administrative expenses per unit sold $2

Fixed selling and administrative expenses per year $130,000

Using the absorption costing method and variable coast method to get profit