Item5 9 points Time Remaining 3 hours 3 minutes 30 seconds03:03:30 eBookHintPrintReferencesCheck my workCheck My Work button is now enabledItem 5 Time Remaining 3 hours 3 minutes 30 seconds03:03:30 Lynch Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 13 Direct labor $ 7 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 288,000 Fixed selling and administrative $ 198,000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the companys product is $48 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.