(18 pts) 5. Berti Corporation manufactures and sells a single product. Cost data for the product are given below:

Variable costs per unit:

Direct materials $15

Direct labor 20

Variable manufacturing overhead 5

Variable selling and administrative 6

Total variable cost per unit $46

Fixed costs per month:

Fixed manufacturing overhead $900,000

Fixed selling and administrative 200,000

Total fixed cost per month $1,100,000

The product sells for $150 per unit. Production and sales data for September follow:

There was no beginning inventory.

Units Units

Produced Sold

30,000 22,000

Required:

1. Determine the unit product cost under:

• Absorption costing
• Variable costing

2. Prepare a variable costing income statement for September.
3. Prepare an absorption costing income statement for September.
4. Explain why the operating income is different in parts (a) and (b).