7-16 Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:Number of units producedVariable costs per unit:12,600Direct materials$115Direct laborVariable manufacturing overheadVariable selling and administrative expensesFixed costs:78$.$817Fixed manufacturing overheadFixed selling and administrative expenses$718,200$289,800The company had no beginning or ending inventories.Required:a. Compute the unit product cost under absorption costing.b. Compute the unit product cost under variable costing.UnitProduct Costa Absorption costingb. Variable costing

There are two type of costing system follow by the organization which are- (1) Absorption costing…

Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation: Number of units produced Variable costs per unit: 12,600 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs: 115 $4 $ $ 78 17 Fixed manufacturing overhead Fixed selling and administrative expenses $718, 200 $289,800 The company had no beginning or ending inventories. Required: a. Compute the unit product cost under absorption costing. b. Compute the unit product cost under variable costing. Unit Product Cost a Absorption costing b. Variable costing