Great Outdoze Company manufactures sleeping bags, which sell for $66.50 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.29 10.40 6.29 Budgeted fixed overhead in 20x1 was $166,400 and budgeted production was 26,000 sleeping bags. The year's actual production was 26,000 units, of which 22,800 were sold. Variable selling and administrative costs were $1.80 per unit sold; fixed selling and administrative costs were $26,000. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Absorption costing Variable costing Product Cost Per Unit $ 42.20 $6 35.80 Req 1 Req 2A > Req 1 Req 2A Req 2B Req 3 Prepare an operating income statement for the year using absorption costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Absorption Costing Sales revenue $ 1,516,200 Less: Cost of goods sold 962,160 Gross margin $ 554,040 Selling and Administrative Expenses Fixed selling and administrative Variable selling and administrative Operating income 41,040 x 26,000 $ 487,000 < Req 1 Req 2B > Req 1 Req 2A Req 2B Req 3 Prepare an operating income statement for the year using variable costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Sales revenue Variable expenses: Variable Costing Variable manufacturing costs Variable selling and administrative costs Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative costs Operating income $6 0 $ 0 < Req 2A Req 3 > Req 1 Req 2A Req 2B Req 3 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) unit increase Predetermined fixed overhead Absorption-costing income = rate minus variable-costing income = < Req 2B Req 3 >