Transcribed image text : Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials 24 Direct labour 14 2 Variable manufacturing overhead Variable selling and administrative 4 Fixed costs per year: Fixed manufacturing overhead $800,000. Fixed selling and administrative expenses $496,000 Required: 1. What is the unit product cost under variable costing? Unit product cost Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units, Variable costs per unit: Manufacturing: $ 24 Direct materials. Direct labour $ 14 $ Variable manufacturing overhead Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $800,000 Fixed selling and administrative expenses $496,000 2. What is the unit product cost und absorption costing? Unit product cost 2 Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: $ 24 Direct materials Direct labour $ 14 $ Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 3. What is the company's total contribution margin under variable costing? Total Contribution margin m 2 $ 4 $800,000 $496,000