The information will be used to answer Question 3 and 4. Ross Company produces a single product. The company has direct materials costs of $8 per unit, direct labour costs of $6 per unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling, and administrative costs are $2 per unit, and fixed selling and administrative costs are $3 per unit at the current activity level. Assume that direct labour is a variable cost. Under absorption costing, the unit product cost is:

$24

$20

$26

$29

4

Under variable costing, the unit product cost is: (the information for this question is presented in Q3)

$21

$18

$20

$24