Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The sounding bars are cast from brass and hand-filed to attain just the right sound. The bars are then mounted on an intricately hand-carved wooden base. The gamelans are sold for 850 (thousand) rupiahs. (The currency in Indonesia is the rupiah, which is denoted by Rp.) Selected data for the company's operations last year follow (all currency values are in thousands of rupiahs):
- Units in beginning inventory 0
- Units produced 330
- Units sold 295
- Units in ending inventory 35
- Variable costs per unit:
- Direct materials Rp 210
- Direct labor Rp 380
- Variable manufacturing overhead Rp 63
- Variable selling and administrative Rp 22
- Fixed costs:
- Fixed manufacturing overhead Rp 54,000
- Fixed selling and administrative Rp 38,000
Requirement 1:
Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
Unit product cost Rp
Requirement 2:
Assume that the company uses variable costing. Compute the unit product cost for one gamelan.