In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year: Units production Unit direct materials Unit direct labor Unit variable overhead Unit fixed overhead* Unit selling expense (variable) Total fixed selling expense Total fixed administrative expense 30,000 $ 9.95 $ 2.75 $ 1.65 $ 2.50 $ 2.00 $ 65,500 $231,000 * The unit fixed overhead is based on 30,000 units produced. Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. $ 3. Calculate operating income under absorption costing for next year. $ 4. Calculate operating income under variable costing for next year. The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received: Intercept Slope 209,800 440 The cost driver used was number of parts inspected. Required: 1. What is the cost formula? Total cost of receiving $ + ($ ) 2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month. Independent variable Dependent variable Variable rate per professional hour Fixed cost per month per part inspected 3. Using the cost formula, predict the cost of receiving for a month in which 7,200 parts are inspected. Total cost of receiving = $