12) (20 points) Borunda Corporation has provided the following data for its two most recent years of operation: Selling price per unit $83 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $9 Direct labor $7 Variable manufacturing overhead S3 Fixed manufacturing overhead per year $360,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold S6 Fixed selling and administrative expense per year $77,000 Year 1 Year 2 2,000 0 12.000 Units in beginning inventory Units produced during the year Units sold during the Units in ending inventory 10,000 8,000 year 12,000 2,000 2,000 Required: A. Assume that the company uses absorption costing and that the oldest units in inventory (units in beginning inventory) are sold first. Prepare an income statement for each year. B. Assume that the company uses variable costing and that the oldest units in inventory (units in beginning inventory) are sold first. Prepare an income statement for each year. C. Reconcile the variable costing and absorption costing net incomes for each year