3 Gibson Company incurred manufacturing overhead cost for the year as follows. 1 points Direct materials $ 39.40/unit Direct labor $ 27.50/unit Manufacturing overhead Variable $ 11.00/unit Fixed ($18.70/unit for 1,700 units) $31,790 Variable selling and administrative expenses $ 8,040 Fixed selling and administrative expenses $14,600 The company produced 1700 units and sold 1.200 of them at $180.30 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required eBook Hint Print a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? 3 Complete this question by entering your answers in the tabs below. Required A Required B Required C 1 points Prepare an income statement using absorption costing. GIBSON COMPANY eBook Income Statement (Absorption Costing) Hint Cost of goods Sold Print References Required Required B 3 Complete this question by entering your answers in the tabs below. Required A Required B Required 1 points Prepare an income statement using variable costing. eBook GIBSON COMPANY Income Statement (Variable Costing) Hint Variable costs Print References eBook Complete this question by entering your answers in the tabs below. Hint Required A Required B Required C Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Print men References Absorption costing Variable costing Which approach is recommended?