Bracey Company manufactures and sells one product. The following information pertains to the companys first year of operations:

Variable cost per unit:
Direct materials	$	21
Fixed costs per year:
Direct labor	$	241,500
Fixed manufacturing overhead	$	319,200
Fixed selling and administrative expenses	$	52,000

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 21,000 units and sold 19,900 units. The selling price of the companys product is $52 per unit.

Required:

1. Assume the company uses super-variable costing:

a. Compute the unit product cost for the year.

b. Prepare an income statement for the year.

2. Assume the company uses a variable costing system that assigns $11.50 of direct labor cost to each unit produced:

a. Compute the unit product cost for the year.

b. Prepare an income statement for the year.

3. Assume the company uses an absorption costing system that assigns $11.50 of direct labor cost and $15.20 of fixed manufacturing overhead cost to each unit produced:

a. Compute the unit product cost for the year.

b. Prepare an income statement for the year.

4a. Reconcile the difference between the super-variable costing and variable costing net operating incomes.

4b. Reconcile the difference between the super-variable costing and absorption costing net operating incomes.

Compute the unit product cost for the year. Assume the company uses super-variable costing.

Unit product cost

Prepare an income statement for the year. Assume the company uses super-variable costing.

Bracey Company
Super-Variable Costing Income Statement
		0
Fixed expenses:
		0
		$0

Compute the unit product cost for the year. Assume the company uses a variable costing system that assigns $11.50 of direct labor cost to each unit produced. (Round your answer to 2 decimal places.)

	Unit product cost

Prepare an income statement for the year. Assume the company uses a variable costing system that assigns $11.50 of direct labor cost to each unit produced. (Round your intermediate calculations to 2 decimal places.)

Bracey Company
Variable Costing Income Statement
		0
Fixed expenses:
		0
		$0

Compute the unit product cost for the year. Assume the company uses an absorption costing system that assigns $11.50 of direct labor cost and $15.20 of fixed manufacturing overhead cost to each unit produced. (Round your answer to 2 decimal places.)

Unit product cost

Prepare an income statement for the year. Assume the company uses an absorption costing system that assigns $11.50 of direct labor cost and $15.20 of fixed manufacturing overhead cost to each unit produced. (Round your intermediate calculations to 2 decimal places.)

Bracey Company
Absorption Costing Income Statement
	0
	$0

Reconcile the difference between the super-variable costing and variable costing net operating incomes.

Super-variable costing net operating income (loss)
Variable costing net operating income (loss)	$0

Reconcile the difference between the super-variable costing and absorption costing net operating incomes.

Super-variable costing net operating income (loss)
Absorption costing net operating income (loss)	$0