Kelly Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations:

Variable cost per unit:

Direct materials $$19\mathrm{.}50$

Fixed costs per year:

Direct labor $$1,173,000$

Fixed manufacturing overhead $$592,500$

Fixed selling and administrative expenses $$218,000$

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Kelly produced $69,000$ units and sold $54,250$ units. During its second year of operations, it produced $69,000$ units and sold $83,750$ units. The selling price of the company's product is $$61$ per unit.

Required:

Assume the company uses super$-$variable costing:

a$.$ Compute the unit product cost for Year $1$ and Year $2.$

b$.$ Prepare an income statement for Year $1$ and Year $2.$

Assume the company uses a variable costing system that assigns $$17\mathrm{.}00$ of direct labor cost to each unit produced:

a$.$ Compute the unit product cost for Year $1$ and Year $2.$

b$.$ Prepare an income statement for Year $1$ and Year $2.$

Reconcile the difference between the super$-$variable costing and variable costing net operating incomes in Years $1$ and $2.$