tion costing and variable costing Calculating Unit Cost under Absorption Costing and Variable Costing LO5 Companies use absorption costing and variable cost ing for different purposes. Understanding the differ- ence in unit cost that results from these methods is necessary for sound decision making. The following production, cost, and pricing data are available: . Units in beginning inventory Units produced Units sold Sales price per unit Variable costs per unit: Direct materials Direct labor Manufacturing overhead Selling and administrative Fixed costs in total: Manufacturing overhead Selling and administrative 12,000 10,500 $22 $7 4 $36,000 50,000 Required Calculate the cost per unit, using absorption costing and variable costing