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Question - Allentown Aqua, Inc. has provided the following information for the year.

Unit produced - 10,000 units

Sales price - $700 per unit

Direct materials - $25 per unit

Direct labor - $50 per unit

Variable manufacturing overhead - $35 per unit

Fixed manufacturing overhead - $410,000 per year

Variable selling and administrative costs - $65 per unit

Fixed selling and administrative costs - $200,000 per year

What is the unit product cost using variable costing?

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