CoursHeroTranscribedText: ACCTZEI] Week '1" Homework 1. Comparative income statementsvanaole and absorption cos ng Highlands Manufacturing Co mp-am.r has determined the cost of manufacturing a unit of prod uct to be as follows. based on normal production Direct materials 510 Direct lal:|or El Variable factory overhead 5 524 Fooecl factory overhead 5 "din Operating statistics for the months of July and August are as follows: Jul3.r August Units produced 0.000 4.000 Un its 5|:III:l 11.000 0.000 Selling and acl ministraliue expenses 525.000 525.000 The selling price is 5-40 per unit. There were no inventories on July 1.. and there is no work in process at August 31. Directions: Complete the comparative income statements on the next page for July and August for Highlands un cler: 1 absorption costi mg 2 variable costing