Sharpens Inc. produces knife sets for use in the commercial kitchens. They sell for $400 each. Selected data for the company's operations last year follow Units in beginning inventory 0 Units produced 3,000 Units sold 2,500 Units in ending inventory 500 Variable costs per unit Direct materials $120 Direct labor $80 Variable manufacturing overhead $40 Variable selling and administrative $20 Fixed Costs Fixed manufacturing overhead $300,000 Fixed selling and administrative $200,000 a. Assume that the company uses variable costing, compute the unit cost for one knife set. Show computations b. Assuming that the company uses absorption costing, compute the unit cost for one knife set. Show computations