Exercise 7-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, L07-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per uniti Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and adeinistrative $ 11 $3 $ 1 51 $330,000 $ 240,000 During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost b. Prepare an income statement for the year. 2. Assume that the company uses variable costing a. Compute the unit product cost b. Prepare an Income statement for the year Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Compute the unit product cost. Assume that the company uses absorption costing.