Question: Burns Manufacturing incurred the following costs during the year: direct materials $20 per unit; direct labor $12 per unit; variable manufacturing overhead $15 per unit; variable selling and administrative costs $8 per unit; fixed manufacturing overhead $120,000; and fixed selling and administrative costs $10,000. Burns produced 12,000 units and sold 10,000 units.
(1) Determine the manufacturing cost per unit under absorption costing.
(2) Determine the manufacturing cost per unit under variable costing.