Great Outdoze Company manufactures sleeping bags, which sell for $66.30 each. The variable costs of production are as follows: Direct material $18.46 Direct labor 16.30 Variable manufacturing overhead 6.60 Budgeted fixed overhead in 20x1 was $155,000 and budgeted production was 25,000 sleeping bags. The year's actual production was 25,000 units, of which 22,000 were sold. Variable selling and administrative costs were $1.90 per unit sold; fixed selling and administrative costs were $30,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method, Prepare an operating income statement for the year using absorption costing. (Do not round intermediate calculations.) Prepare an operating income statement for the year using variable costing. (Do not round intermediate calculations.) Reconcile reported operating income under the two methods using the shortcut method. (Round your predetermined fixed overhead rate to 2 decimal places.) Change in inventory (in units) Predetermined xed overhead rate Absorptlon-costlng Income mlnus varlable-costlng Income l