Linden Company manufactures and sells a single product. Cost data for the product follow Variable costs per unit Direct materials Direct labor Variable factory overhead Variable selling and administrative $6 10 Total variable costs per unit $21 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative $ 72,000 163,000 Total fixed cost per month 235,000 The product sells for $47 per unit. Production and sales data for May and June, the first two months of operations, are as follows: May June 18,000 18,000 Sold 14,000 22,000 Income statements prepared by the accounting department, using absorption costing, are presented below May S 658,000 $1,034,000 322,000 506,000 Cost of goods sold Gross margin Selling and administrative expenses 336,000 91,000 528,000 207,000 Net operating income $ 145,000 S 321,000 Required 1. Determine the unit product cost under absorption costing and variable costing. Unit Product Cost F1 F2 F3 FS Fb Required: 1. Determine the unit product cost under absorption costing and variable costing Unit Product Cost Absorption costing Variable costing 2. Prepare contribution format variable costing income statements for May and June. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$ sign in your response.) Variable Costing Income Statement May (Click to select) Variable expenses: (Click to select) (Click to select) Total variable expenses (Click to select) Fixed expenses (Click to select) (Click to select) Total fixed expenses (Click to select) 3. Reconcile the variable costing and absorption costing net operating incomes. (Loss amounts and amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your F1 0 F2 O F3 F7 3. Reconcile the variable costing and absorption costing net operating incomes. (Loss amounts amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes May June Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) References eBook&Resources Worksheet Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method. Learning Objective: 06 operating incomes and