Great Outdoze Company manufactures sleeping bags , which sells for $65.30 each . The variable costs of production are as follows : direct material $19.60 Direct Labor $11.00 Variable Manufacturing 7.30 overhead Budgeted fixed overhead in 2021 was $154,000and budgeted production was 22,000 sleeping bags . The years actual production was 22,000 units of which 19,700 were sold . Variable selling and administrative costs were $1.90 per unit sold ,fixed selling and administrative costs were $26,000 1. Calculate the product cost per sleeping bag under a) absorption costing b) Variable costing 2a) prepare income statements for the year using absorption costing b) Prepare income statements for the year using variable costing 3. Reconcile reported operating income under the two methods using the shortcut method