B H Starfax, Inc. manufactures a small part that is widely used in various electronic products such as home computers. The operating results using variable costing as well as the flow in units for the most recent three months are as follows: 1 March $14,000 8,000 12,000 18,000 2,000 4,000 2 2 December January February 4 Variable Cost Operating income (loss $11,000 $6,000 5 Beginning inventory In units 2,000 4,000 6 Production in units 10,000 15,000 18,000 Sales In units 13,000 14,000 8 Ending Inventory In units 3,000 9 10 The following data is applicable to all months: Variable manufacturing costs $5.00 per unit 12 Variable selling expenses $2.00 per unit 13 Fbed manufacturing overhead $54,000 per month 14 5 Required: 6 7 1. Calculate the foed overhead per unit for December, January, February and March (1 mark) 3 December January February March Fixed overhead per unit 2. Determine the absorption costing operating income for March using the income reconciliation approach. Show all supporting calculations. (4 marks) Variable Cost Operating income (los) Absorption Costing Operating income foss)