Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:

Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:

# of units produced 7,000

Variable costs per unit:

Direct Material $37

Direct Labor $43

Variable manufacturing overhead $5

Variable selling&administractive expense $1



Fixed Costs:

Fixed manufacturing overhead $84,000

Fixed selling&administrative expenses $119,000



No beginning or ending inventories



A) Compute the unit product cost under absorption costing.

B) Compute the unit product cost under variable costing.

C) If the selling price had been $150 per unit, what was the contribution margin per unit?

D) If the selling price had been $150, what is the gross profit per unit?

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