Advance Products, Inc., has just organized a new division to manufacture and sell specially designed tables using select hardwoods for personal computers. The division's monthly costs are shown in the schedule below:

Manufacturing costs:

1. Variable costs per unit:
2. Direct materials: $86
3. Variable manufacturing overhead: $4
4. Fixed manufacturing overhead costs per month: $240,000

Selling and administrative costs:

1. Variable: 15% of sales
2. Fixed per month: $160,000

Advance Products regards all of its workers as full-time employees and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead.During the first month of operations, the following activity was recorded:

Units produced4,000

Units sold3,200

Selling price per unit$250

Required

a)Compute the unit product cost under absorption costing.

b)b)Compute the unit product cost under Variable costing.

c)Prepare an income statement for the month using absorption costing

d)Prepare a contribution format income statement for the month using variable costing