Hartwick Manstacturing manulactures a singlo product that t will solf for 583 per unit. The company is lookirc During as frat yeer of opernisors, the compony plans to munufacture 26,000 units and are tiopotes to projoct its connating income lor its frist two years of epenafons. Cout information for the ingle unt of its product is as follows: seling 24,000 of those unts. During the socond yes of ats operations, the compeny plans bo (i) (Click the ienen to viow the data) the second yeos thom is finst year of ocentions). Requirement 1. Procare an absorpion oostrig income statament for (a) the first year of operafions and (b) the second year of operatiens. Begn by cabulasing the diferench in incone wach year using the formula provided. Cutiving incterie Requirement 3. Prepare a variable costing income statement for (a) the first year of operations and (b) the second year of operations. More info fing the second - Direct material per unit produced $33 - Direct labor cost per unit produced $17 - Variable manufacturing overhead (MOH) per unit produced $3 - Variable operating expenses per unit sold $2 - Fixed manufacturing overhead (MOH) for each year is $416,000, while fixed operating expenses for each year will be $84,000. 1. Prepare an absorption costing income statement for the following: a. The first year of operations b. The second year of operations 2. Before you prepare the variable costing income statements for Hardwick, predict the company's operating income using variable costing for both its first year and its second year without preparing the variable costing income statements. Hint: Calculate the variable costing operating income for a given year by taking that year's absorption costing operating income and adding or subtracting the difference in operating income as calculated using the following formula: Difference in operating income =( Change in inventory level in units Fixed MOH per unit) 3. Prepare a variable costing income statement for each of the following years: a. The first year of operations b. The second year of operations Hartwick Manstacturing manulactures a singlo product that t will solf for 583 per unit. The company is lookirc During as frat yeer of opernisors, the compony plans to munufacture 26,000 units and are tiopotes to projoct its connating income lor its frist two years of epenafons. Cout information for the ingle unt of its product is as follows: seling 24,000 of those unts. During the socond yes of ats operations, the compeny plans bo (i) (Click the ienen to viow the data) the second yeos thom is finst year of ocentions). Requirement 1. Procare an absorpion oostrig income statament for (a) the first year of operafions and (b) the second year of operatiens. Begn by cabulasing the diferench in incone wach year using the formula provided. Cutiving incterie Requirement 3. Prepare a variable costing income statement for (a) the first year of operations and (b) the second year of operations. More info fing the second - Direct material per unit produced $33 - Direct labor cost per unit produced $17 - Variable manufacturing overhead (MOH) per unit produced $3 - Variable operating expenses per unit sold $2 - Fixed manufacturing overhead (MOH) for each year is $416,000, while fixed operating expenses for each year will be $84,000. 1. Prepare an absorption costing income statement for the following: a. The first year of operations b. The second year of operations 2. Before you prepare the variable costing income statements for Hardwick, predict the company's operating income using variable costing for both its first year and its second year without preparing the variable costing income statements. Hint: Calculate the variable costing operating income for a given year by taking that year's absorption costing operating income and adding or subtracting the difference in operating income as calculated using the following formula: Difference in operating income =( Change in inventory level in units Fixed MOH per unit) 3. Prepare a variable costing income statement for each of the following years: a. The first year of operations b. The second year of operations