Great Outdoze Company manufactures sleeping bags, which sell for $66.80 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $18.60 11.00 7.90 Budgeted fixed overhead in 20x1 was $154,100 and budgeted production was 23,000 sleeping bags. The year's actual production was 23,000 units, of which 19,900 were sold. Variable selling and administrative costs were $1.30 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. Req 1 Req 2A Req 2B Req3 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.) Product Cost Per Unit Absorption costing Variable costing Req 1 Req 2A Req 2B Req3 Prepare operating income statements 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 Less: Cost of goods sold Gross margin Selling and Administrative Expenses Variable selling and administrative Fixed selling and administrative Operating income Req 1 Req 2A Req 2B Req3 Prepare operating income statements for the year using variable costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Variable Costing Sales revenue Variable expenses: Variable manufacturing costs Variable selling and administrative costs $ Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative costs Operating income 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) Predetermined | fixed overhead rate Absorption-costing = income minus variable- costing income unit increase