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

operations:

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first

year of operations, Kelly produced $55,000$ units and sold $43,750$ units. During its second year of operations, it produced $55,000$ units

and sold $66,250$ units. The selling price of the company's product is $$46$ 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 $$9\mathrm{.}50$ 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 $2.$

Complete this question by entering your answers in the tabs below.

Req $1$B

Req $2A$

Req $2$B

Req $3$

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

$($Round your intermediate calculations to $2$ decimal places.$)$