37. Which of the following statements is true of absorption and variable costing systems? A. Both costing methods consider selling and administrative costs to be period costs B. Variable costing considers variable selling and administrative costs to be product costs. C. Absorption costing considers fixed manufacturing overhead to be period costs. D. Both costing methods consider fixed manufacturing overhead to be product cos E. Both methods compute and report gross profit in their reports. 38. Nice Aqua Inc. has provided the following information for the year 2014. Units produced Sale price Direct materials Direct labor. Variable manufacturing ov Fixed manufacturing overhead. Variable selling and administrative o Fixed selling and administrative c 8,000 units $400 per unit $35 per unit $25 per unit $45 per unit $480,000 per year S70 per unit $250,000 per year erhead What is the unit product cost using variable costing? A. $135 B. $100 C. S105 D. $165 E $140 39. A variable costing income statement is used for A. filing income tax returns. B. external reporting purposes C. determining the amount of gross profit D. imemal decision making purposes. E investor purposes 40. Jupiter nc. reports the following information for Angust Sale revenue $800.000 Variable Fixed costs100.000 Calculate the contribution margin for the month of August A. $450,000 B. S600,000 C. $700,000 D. $650.000 E $500,000