Baird Company Incurred manufacturing overhead cost for the year as follows: $ 38. 20/unit $ 27.10/unit Direct materials Direct labor Manufacturing overhead Variable Fixed ($18.40/unit for 1,7ee units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 10.30/unit $31,280 $ 8,400 $14,300 The company produced 1,700 units and sold 1,200 of them at $180.90 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required a. Prepare an Income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting? Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare an income statement using absorption costing. BAIRD COMPANY Income Statement (Absorption Costing) Revenues S 217,080 Cost of goods Sold Direct materials S 45,840 Direct labor 32.520 Manufacturing overhead 12.360 90,720 126,360 S Gross margin Selling and administrative expenses Net income $ 126,360 Exercise 11-16A Variable costing versus absorption costing LO 11-4 Baird Company Incurred manufacturing overhead cost for the year as follows: Direct materials $ 38.20/unit Direct labor $ 27.10/unit Manufacturing overhead Variable $ 10.30/unit Fixed ($18.40/unit for 1,700 units) $31,280 Variable selling and administrative expenses $ 8,400 Fixed selling and administrative expenses $14,300 The company produced 1,700 units and sold 1,200 of them at $180.90 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required a. Prepare an Income statement using absorption costing. b. Prepare an Income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting? Complete this question by entering your answers in the tabs below. Required A Required B Required c Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended?