Great Outdoze Company manufactures sleeping bags, which sell for $66.20 each. The variable costs of production are as follows: Direct material $19.20 Direct labor 9.20 Variable manufacturing overhead 7.30 Budgeted fixed overhead in 20x1 was $204,400 and budgeted production was 28,000 sleeping bags. The year's actual production was 28,000 units, of which 24,900 were sold. Variable selling and administrative costs were $1.20 per unit sold; fixed selling and administrative costs were $25,000 Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare operating income statements for the year using absorption costing. 2-b. Prepare operating income statements for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method