Carolina Catsup Company produces catsup, which it sells exclusively to fast-food restaurants in 5S-gallon containers, whichell for 16@achandhavethefollowingvariablecosts:Direchmateriall.eiteswerdeFeteesel$16@\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}:\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}.\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}$5 ve Direchlabotsehe 2) ARANbeee.n eee 2 | ae Vatiabletoverhiéad 2 =a arse ot As eee )EcFi1XPoseReraioH3a9000(G20=3eteeBudgetedfixedoverheadin20x0was$)\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}1\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}3\mathrm{????}9000(\mathrm{????}20=3\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}20\mathrm{????}0\mathrm{????}\mathrm{????}\mathrm{????}$300,000. Actual production of 5-gallon containers totaled 150,000, of which 125,000 were sold. The company incurred the following selling and administrative expenses:
EIXGCH, Seat res ReneeCo re 50,000fortheyearVaniabletss)heeae$50,000\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????})ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}$1 per container sold Required

a. Compute the standard product cost per container of catsup under (1) peli he costing and (2)
variable costing. Los

b. Prepare income statements for 20x0 using (1) absorption costing and (2) variable costing.

c. Reconcile the income reported under the two methods by listing the two key places where the income statements differ.