The Gong Show Inc. produces VHS tapes of old game shows. Cost data for the upcoming period is provided below: Direct materials (per unit) $10.00 Direct labor (per unit) $1.00 Variable manufacturing overhead $2.50 (per unit) Variable selling and administrative $1.75 expenses (per unit) Fixed overhead (annual) $100,000 Fixed selling and administrative 12,000 expenses (annual) Units produced 20,000 Units sold 15,000 Requirement: What is the product cost per unit under the absorption method?