Audiophonics Limited manufactures and sells high quality and durable ear buds for use with personal electronics that are custom moulded to each customer's ear. Cost data for the product follow Variable costs per unit: Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit 13 19 4 5 $ 41 Fixed costs per month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $222,000 199,800 $421,800 The product sells for $63 per unit. Production and sales data for May and June, the first two months of operations, are as follows: May June Units Produced 22,200 22, 2ee Units Soid 16,600 27,800 Income statements prepared by the Accounting Department using absorption costing are presented below May June $1,045,800 $1,751,400 Sales e 1,021,200 257,600 1,021,200 Cost of goods sold: Beginning inventory Add cost of goods manufactured Goods available for sale Less ending inventory 1,021,200 257,600 1,278,500 cost of roods sold 763,60 1,278,800 1,021,200 257,600 2,278,888 e Goods available for sale Less ending inventory Cost of goods sold Gross margin Selling and administrative expenses Operating income 763,600 1,278,888 282,200 282,800 472,600 338,888 $ (600)) $ 133,800 Required: 1. Determine the unit product cost under each of the following methods Absorption costing b. Variable costing 2. Prepare variable costing income statements for May and June using the contribution approach (Do not leave any empty spaces: Input a O wherever it is required.) May June Variable expenses Variable cost of goods sold: