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anufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 20 per unit Fixed $ 8,400,000 (per

anufacturing costs
Direct materials $ 35 per unit
Direct labor $ 55 per unit
Overhead costs
Variable $ 20 per unit
Fixed $ 8,400,000 (per year)
Selling and administrative costs for the year
Variable $ 700,000
Fixed $ 4,250,000
Production and sales for the year
Units produced 105,000 units
Units sold 75,000 units
Sales price per unit $ 350 per unit

1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

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