IS P10-1 Absorption and variable costing income statements Biscayne Industries has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year: Direct materials.... $ 5 Direct labor... Variable factory overhead... Fixed factory overhead.... Total cost... 4 3 3 $15 April 8,000 12,000 Operating statistics for March and April include the following: March Units produced.. 12,000 Units sold...... 8,000 Selling and administrative $12,000 expenses (all fixed)....... $12,000 The selling price is $20 per unit. There were no inventories on March 1, and there is no work in process on April 30. Required: Prepare comparative income statements for each month under each of the following: 1. Absorption costing (include under- or overapplied fixed overhead) 2. Variable costing