ABC manufacturing company produces a single product and has provided the following data concerning its most recent month of operations:

Total sales	$215,000
Variable costs per unit
Direct materials	$25
Direct labour	30
Manufacturing overhead	5
Selling and administration	6
Fixed costs (total)
Manufacturing overhead	6,000
Selling and administration	8,000
Units in beginning inventory	0 units
Sales	1,400 units
Units in ending inventory	200 units

Required

a) Calculate the per unit cost under variable and absorption costing.

b) Prepare a statement of income for the month using absorption costing. Show all of your work.

c) Without calculations, would the income be higher or lower under variable costing? Explain why.