Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow:

Units in beginning inventory0Units produced20,000Units sold19,000Units in ending inventory1,000Variable costs per unit:Direct materials$50Direct labor80Variable manufacturing overhead20Variable selling and administrative10Total variable cost per unit$160Fixed costs:Fixed manufacturing overhead$700,000Fixed selling and administrative285,000Total fixed costs$985,000

Required:

1.Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.

2. Assume that the company uses absorption costing. create an income statement for last year.

Flandro Company uses a standard cost system and sets its predetermined overhead rate on the basis of direct labor-hours. The following data are taken from the company's planning budget for the current year: Denominator activity (direct labor-hours) 10,000 Variable manufacturing overhead cost $37,500 Fixed manufacturing overhead cost $64,500 I The standard cost card for the company's only product is given below: (1) (2) Standard Standard Standard Quantity Price Cost Inputs or Hours or Rate (1) x (2) Direct materials 4 yards $ 2.55 per yard $ 10.20 Direct labor 2 hours 5 8.50 per hour 17.00 Manufacturing overhead 2 hours $ 10.20 per hour 20.40 Total standard cost per $ 47.60 unit During the year, the company produced 5,200 units of product and incurred the following actual results: Materials purchased, 33,000 yards at $2.45 per yard $ 80,850 Materials used in production (in yards) 21,450 Direct labor cost incurred, 11,000 hours at $8.55 per hour $ 94,050 Variable manufacturing overhead cost incurred $ 38,950 Fixed manufacturing overhead cost incurred $ 75,350