ABC manufactures a single product. The selling price is $$30$ per unit. The following information

is available:

Required:

A$.$ For Year $1,$

Calculate the unit product cost under $1)$ absorption costing and $2)$ variable costing.

Prepare the income statement using $1)$ absorption costing and $2)$ variable costing.

Reconcile operating income under absorption costing to operating income under variable

costing.

B$.$ For Year $2,$

Calculate the unit product cost under $1)$ absorption costing and $2)$ variable costing.

Prepare the income statement using $1)$ absorption costing and $2)$ variable costing.

Reconcile operating income under absorption costing to operating income under variable

costing.