[11 Marks] The Eco Refrigerator Company produces and sells one product: a portable refrigerator. The following data refer to the year just completed: $0 25,000 20,000 $400 Beginning inventory Units produced Units sold Sales price per unit Selling and administrative expenses: Variable per unit Fixed (total) Manufacturing costs: Direct materials cost per unit Direct labour cost per unit Variable overhead cost per unit Fixed overhead (total) $150 $275,000 $2001 $500 $300 $300,000 Assume that direct labour is a variable cost. Required: MAKE SURE THAT YOU SHOW ALL OF YOUR CALCULATIONS FOR FULL MARKS AND THAT THEY ARE PROPERLY LABELED. a) [3.5 Marks] Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. b) [3 Marks] Prepare an income statement in GOOD FORM for the year using absorption costing. THE CALCULATION OF COST OF GOODS SOLD MUST BE CONTAINED IN THE STATEMENT. It must be properly labeled for full marks. c) [3.5 Marks] Prepare an income statement in GOOD FORM for the year using variable costing. THE CALCULATION OF COST OF GOODS SOLD MUST BE CONTAINED IN THE STATEMENT. It must be properly labeled for full marks. d) [1 Marks] What causes the difference in these circumstances between absorption costing income and variable costing income? THIS QUESTION CAN BE ANSWERED IN ONE SENTENCE