Klotz Co. manufactures a dog shampoo called Cleanfur. Relevant data for Cleanfur in January 2013, the first month of production, are as follows:
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| Units | Produced 20,000; sold 15,000; beginning inventory zero |
| Variable manufacturing unit costs | $10 |
| Fixed costs | Manufacturing overhead $140,000 Selling and administrative expenses $30,000 |
The per unit costs under both absorption and variable costing are:
| Absorption | ||
| $10 | $7 | |
| $7 | $10 | |
| $17 | $7 | |
| $17 | $10 |
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