1)

Kelly Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable cost per unit: Direct materials $ 18.59 Fixed costs per year: Direct labor $ 1,972,008 Fixed manufacturing overhead $ 577,568 Fixed selling and administrative expenses $ 214JBBB The company does not incur any variable manufacturing overhead costs orvariable selling and administrative expenses. During its first year of operations, Kelly produced 67,000 units and sold 52.750 units. During its second year of operations. it produced 67,000 units and sold 81,250 units. The selling price of the company's product is $59 per unit. Required: 1. Assume the company uses superrvariable costing: a. Compute the unit product cost for Year1 and Year 2. b. Prepare an income statement for Yearl and Year 2. 2. Assume the company uses a variable costing system that assigns $16.00 of direct labor cost to each unit produced: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Yearl and Year 2. 3. Reconcile the difference between the supervariable costing and variable costing net operating incomes in Years 1 and 2. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Compute the unit product cost for Year 1 and Year 2. Assume the company uses super-variable costing. (Round your answers to 2 decimal places.) Unit Product Cost Year 1 Year 2Req 1A Req 1B Req 2A Req 2B Req 3 Prepare an income statement for Year 1 and Year 2. Assume the company uses super-variable costing. Kelly Company Super-Variable Costing Income Statement Year 1 Year 2 0 0 Fixed expenses: Total fixed expenses 0 0 Net operating income (loss)Complete this question by entering your answers in the tabs below. Req 1A Req 1E: Req 2A Req ZB Req 3 Compute the unit product cost for Year 1 and Year 2. Assume the company uses a variable costing system that assigns $16.00 of direct labor cost to each unit produced. (Round your answers to 2 decimal places.) Year 1 Year 2 Req 1A Req 1B Req 2A Req 2B Req 3 Prepare an income statement for Year 1 and Year 2. Assume the company uses a variable costing system that assigns $16.00 of direct labor cost to each unit produced. (Round your intermediate calculations to 2 decimal places.) Kelly Company Variable Costing Income Statement Year 1 Year 2 0 0 Fixed expenses: Total fixed expenses 0 0 Net operating income (loss)Complete this question by entering your answers in the tabs below. Req 1A Req 13 Reg 2A Req 2B Req 3 Reconcile the difference between the supervariable costing and variable costing net operating incomes in Years 1 and 2. Supervariable costing net operating income (loss) Variable costing net operating income (loss) $ 0 $ 0