Check my work mode: This shows what is correct or incorrect for the Stuart Company incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing overhead Variable Fixed ($19.60/unit for 1,000 units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 38.20/unit $27.70/unit $11.70/unit $ 19,600 $3,750 $14,100 The company produced 1,000 units and sold 500 of them at $180.50 per unit. Assume that the production manager is paid a 2 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 not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. STUART COMPANY