CHAPTER 8 6 Great Outdoze, Inc., manufactures high-quality sleeping bags, which sell for $65.90 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $20.10 10.90 6.50 Budgeted fixed overhead in 20x4 was $194,400 and budgeted production was 27000 sleeping bags. The year's actual production was 27000 units, of which 24,900 were sold. Variable selling and administrative costs were $1.10 per unit sold; fixed selling and administrative costs were $27000 Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. (Do not round intermediate calculations and round your final onswers to 2 decimal places.) n costing costing 2. Prepare operating income statements for the year using: a. Absorption costing (Do not round intermediate colculotions.) Operating Income Statement For the Year Ended December 31. 20x4 Seling and Administralive Expenses