Answer:
Results are below.
Explanation:
<u>The absorption costing method includes all costs related to production, both fixed and variable. </u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>
<u>Absorption costing:</u>
<u />
Unitary fixed overhead= 940,000/23,000= $40.87
Unitary production cost= 180 + 340 + 51 +40.87
Unitary production cost= $610.87
<u>Variable costing:</u>
Unitary production cost= 180 + 340 + 51
Unitary production cost=$571