Great Outdoze Company manufactures sleeping bags, which sell for $66.90 each. The variable costs of production are as follows: Direct material $20.00 Direct labor Variable manufacturing overhead 10.00 8.10 Budgeted fixed overhead in 20x1 was $153,600 and budgeted production was 24,000 sleeping bags. The year's actual production was 24,000 units, of which 21,500 were sold. Variable selling and administrative costs were $2.00 per unit sold; fixed selling and administrative costs were $24,000. 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