1. Xylo produces xylophones. Each xylophone is sold for $850. Selected data for the companys operations last year follow:

Units in beginning inventory 0

Units Produced 250

Units Sold 225

Units in ending inventory 25

Variable Costs per unit:

Direct materials $100

Direct labor $320

Variable Mfg Overhead $40

Variable Selling & Admin $20

Fixed Costs:

Fixed Mfg Overhead $60,000

Fixed Selling & Admin $20,000

Required:

1. Compute the unit product cost for one xylophone under absorption costing.
2. Compute the unit product cost for one xylophone under variable costing.