FMOM NMOH (4) Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead was $18,000 in each year. This fixed manufacturing overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $I per unit sold. Required: 1. Compute the unit product cost in each year under variable costing. 2. Prepare new income statements for each year using variable costing. 3. Reconcile the absorption costing and variable costing net operating income for each year. (5) Rasheed Corporation had the following sales and production for the past four years: Year 3 Year 2 Year 1 4,000 8,000 Production in units Sales in units 5,000 5,000 6,000 5,000 10 Sales price/unit Total variable manufacturing cost /unit Total fixed manufacturing cost /year 10 20 4 4 4 40,000 40,000 40,000 2 2 Variable selling cost/unit Total fixed S&A cost /year There were no beginning inventories in Year 1. Required: 1. Prepare income statement for each year under variable approach and absorption approach. 2. Show the effect on balance sheet each year. 2 30,000 30,000 30,000 FMOM NMOH (4) Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead was $18,000 in each year. This fixed manufacturing overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $I per unit sold. Required: 1. Compute the unit product cost in each year under variable costing. 2. Prepare new income statements for each year using variable costing. 3. Reconcile the absorption costing and variable costing net operating income for each year. (5) Rasheed Corporation had the following sales and production for the past four years: Year 3 Year 2 Year 1 4,000 8,000 Production in units Sales in units 5,000 5,000 6,000 5,000 10 Sales price/unit Total variable manufacturing cost /unit Total fixed manufacturing cost /year 10 20 4 4 4 40,000 40,000 40,000 2 2 Variable selling cost/unit Total fixed S&A cost /year There were no beginning inventories in Year 1. Required: 1. Prepare income statement for each year under variable approach and absorption approach. 2. Show the effect on balance sheet each year. 2 30,000 30,000 30,000