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? Answer is complete but not entirely correct. 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 s 217,080 Income Statement (Absorption Costing) Revenues Cost of goods Sold Direct materials S 45,840 Direct labor 32.520 Manufacturing overhead 12.360 Manufacturing overhead x 22,080 112.800 104,280 IS Gross margin Selling and administrative expenses 22.700 Net income S 81,580