Direct material 3. Colin Company sells its product for $66 each. Unit variable costs are: $ 12 18 9 6 Direct manufacturing labour Variable manufacturing overhead Marketing expenses per unit sold Total annual fixed manufacturing costs are $180,000 and fixed administrative expenses are $60,000. The company produces 25,000 units and expects to sell 20,000 units. Required: Prepare an income statement using absorption costing method and another using marginal costing method.