1. Harvey Spectre Corporation produces a single product and the following information is available: Selling price per unit $188 Units in beginning inventory in Year 1 0 Total units produced in Year 1 4,300 Total units sold in Year 1 3,900 Units produced in Year 2 4,200 Units sold in Year 2 4,200 Yearly Fixed costs (Constant for Year 1 and Year 2) : Manufacturing Overhead Costs $185,000 Selling & Admin $45,000 Variable Costs per unit (Constant for Year 1 and Year 2):

DM $32

DL $11.20

MOH $3.75

Selling & Admin $9.

Required:

a. Calculate the product cost per unit for Year 2, under the Variable Costing System.

b. Calculate the product cost per unit for Year 2, under the Absorption Costing System.

c. Prepare the Contribution Margin format Income Statement for Year 2 (using the Variable Costing System)