Shastri Bicycle of Bombay, India, produces an inexpensive, yet rugged, bicycle for use on the city’s

Shastri Bicycle of Bombay, India, produces an inexpensive, yet rugged, bicycle for use on the city’s crowded streets that it sells for 500 rupees. (Indian currency is denominated in rupees, denoted by .) Selected data for the company’s operations last year follow:

Units in beginning inventory		0
Units produced		10,000
Units sold		8,000
Units in ending inventory		2,000
Variable costs per unit:
Direct materials		120
Direct labor		140
Variable manufacturing overhead		50
Variable selling and administrative		20
Fixed costs:
Fixed manufacturing overhead		600,000
Fixed selling and administrative		400,000

Required:

1.	Assume that the company uses absorption costing. Compute the unit product cost for one bicycle. (Omit the "" sign in your response.)

Unit product cost

370

2.	Assume that the company uses variable costing. Compute the unit product cost for one bicycle. (Omit the "" sign in your response.)

Unit product cost

310