a) Absorption costing

Number of units produced 10,500

Fixed manufacturing overhead $ 126,000
Fixed manufacturing overhead per unit (126,000 / 10,500) $ 12.00

Cost per unit (Under Absorption costing)

Direct materials $ 22.20
Direct labor 14.80
Variable Manufacturing overhead 17.10
Fixed Manufacturing overhead 12.00
Cost per unit $ 66.10

b) Variable Costing
Cost per unit (Under Variable costing)
Direct materials $ 22.20
Direct labor 14.80
Variable Manufacturing overhead 17.10
Cost per unit (Under Variable costing) $ 54.10

a) Absorption costing $ 66.10

b) Variable Costing $ 54.10

Note: Under Variable Costing Fixed Manufacturing cost considered as product cost
that's why not inculded in the cost per unit. Selling and administrative cost are the
period cost for both the costing process.