ABC White Water Rafting Company manufactures kayaks, which sell for $565 each. The variable costs of production (per unit) are as follows: Direct Material $ 200 Direct labor 110 Variable manufacturing overhead 80 Budgeted fixed overhead in 20x1 was $400,000 and budgeted production was 50,000 kayaks. The years actual production was 50,000 units, of which 47,000 were sold. Variable selling and administrative costs were $5 per unit sold; fixed selling and administrative costs were $75,000. (10 points) Required: 1. Calculate the product cost per kayak under (a) absorption costing and (b) variable costing. 2. Prepare operating income statements for the year using (a) absorption costing and (b) variable costing.