2 2.14 points Skiced eBook H 14 10 Prim Reference Exercise 7-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs, per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed coats per years Fixed manufacturing overhead Fised selling and administrative 56 $.3 $276,000 106,000 During the year, the company produced 23,000 units and sold 19,000 units. The selling price of the company's product is $50 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req2A Req 28 Compute the unit product cost. Assume that the company uses absorption costing Unit product cost Rey (A Reg 10 >