Income Statements under Absorption and Variable Costing

In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kallings controller provided the following information for the coming year:

Units production	30,000
Unit direct materials	$ 9.95
Unit direct labor	$ 2.75
Unit variable overhead	$ 1.65
Unit fixed overhead*	$ 2.50
Unit selling expense (variable)	$ 2.00
Total fixed selling expense	$ 65,500
Total fixed administrative expense	$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.

$