Cooley company has the following information:

Variable production costs ----------------- $ 8 per unit

Fixed OH Producation costs ------------ $120,000 per year

Variable selling & admin. ------------------- $4 per unit

Fixed selling & admin. ------------------------ $60,000 per year

Normal production ----------------------------- 20,000 units per year

The company uses the FIFO inventory method. 2011 was the first year of operation

year

year	Budgeted units to produce	Actual units produce	Actual units sold
2011	20,000	16,000	14,000
2012	16,000	25,000	22,000
2013	19,000	15,000	19,000

Question1: if income under absorption costing for year 2013 is $50,000, what was the 2013 net income under the variable costing method assuming that overhead was applied to production using a rate based on normal production?

Question 2: if income under variable costing for year 2012 is $40,000, what was the 2012 net income under the absorption costing method assuming that overhead was applied to production using a rate based on budgeted producation for each year? (note: this neans that each year will have a different budgeted overhead application rate?

please show clear steps for each questions

thanks