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 $ $14\mathrm{.}50$

Fixed costs per year:

Direct labor $ $678,500$

Fixed manufacturing overhead $ $517,500$

Fixed selling and administrative expenses $ $198,000$

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Kelly produced $59,000$ units and sold $46,750$ units. During its second year of operations, it produced $59,000$ units and sold $71,250$ units. The selling price of the company$$s product is $$51$ per unit.

Required:

$1.$ 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 $2.$

$2.$ Assume the company uses a variable costing system that assigns $$11\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 $2.$

$3.$ Reconcile the difference between the super$-$variable costing and variable costing net operating incomes in Years $1$ and $2.$