Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customers ear. Cost data for the product follow:

Variable costs per unit:
Direct materials	$	8
Direct labour		14
Variable factory overhead		5
Variable selling and administrative		7
Total variable costs per unit	$	34
Fixed costs per month:
Fixed manufacturing overhead	$	149,400
Fixed selling and administrative		132,800
Total fixed cost per month	$	282,200

The product sells for $52 per unit. Production and sales data for May and June, the first two months of operations, are as follows:

	Units Produced	Units Sold
May	16,600	13,800
June	16,600	19,400

Income statements prepared by the Accounting Department using absorption costing are presented below:

	May			June
Sales	$	717,600		$	1,008,800
Cost of goods sold:
Beginning inventory		0			100,800
Add cost of goods manufactured		597,600			597,600
Goods available for sale		597,600			698,400
Less ending inventory		100,800			0
Cost of goods sold		496,800			698,400
Gross margin		220,800			310,400
Selling and administrative expenses		229,400			268,600
Operating income	$	(8,600)		$	41,800

Required: 1. Determine the unit product cost under each of the following methods. 2. Prepare variable costing income statements for May and June using the contribution approach. (Do not leave any empty spaces; input a 0 wherever it is required.) 3. Reconcile the variable costing and absorption costing operating income figures. (Loss amounts should be indicated with a minus sign.) 4. This part of the question is not part of your Connect assignment