Reference no: EM132774977

Question - Super Bike Manufacturing Company presents the following data for year 2016:

Opening inventory: 0 Units

Sales: 8,000 Units

Production: 10,000 Units

Closing inventory: 2,000 Units

Direct materials: $240

Direct labor: $280

Variable manufacturing overhead expenses: $100

Variable selling and administrative expenses: $40

Fixed manufacturing overhead expenses: $1200,000

Fixed selling and administrative expenses: $800,000

Required - Using the data given above, compute the unit product cost of one bike under:

1. absorption costing system.

2. variable costing system.