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VARIABLE COSTING Exercises 1. A company makes stained glass lamps. Each lamp that it sells for P210 per unit requires P12 of direct materials and P48 of direct labor. Fixed overhead costs are expected to be P135,000 per year. The company expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero. Required: Income statement using both absorption costing and variable costing methods assuming that the company makes 1,000, 1,250, and 1,500 lamps during the year