direct labor is 1.80

Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year, Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Ms. Tyler is discouraged over the loss shown for the quartec, particularly because sne nau pronned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point, Ms. Tyler is manufacturing only one product - a swimsuit. Production and cost data relating to the swimsut for the first cuarter follow: Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company's absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 34,100 units but sold 34,100 units. (Assume no change in tota: fixed costs.) 8. What is the company's variable costing net operating income (0oss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes fosses) for the second quarter