XYZ Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are 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 manufacturing overhead $ 40

Variable selling and administrative $ 20

Fixed costs: Fixed manufacturing overhead $ 60,000

Fixed selling and administrative $ 20,000

1. Assume the company uses absorption costing. Compute the unit product cost for one gamelan.
2. Assume the company uses variable costing. Compute the unit product cost for one gamelan.