lines. What insights revealed statelllellllllullllll by ths PROBLEM Reconcile Variable Costing Statements qu01, Lo2, LO3] given below: Company manufactures sells t data for the product are Variable costs per unit: Direct materials 10 Direct labor Variable manufacturing overhead Variable selling and administrative $25 Total variable cost per unit Fixed costs per month: $315,000 Fixed manufacturing 245,000 Fixed selling and administrative $560,000 Total fixed cost per month The product sells for $60 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Units Produced Sold 17500 15,000 July 17500 20,000 August The company's Accounting Department has prepared absorption costing income statements for July as presented below: August July $900,000 $1,200,000 Sales Cost of goods sold 600,000 800,000 Gross margin 300,000 400,000 Selling and administrative expenses 290,000 305,000 Net operating income 10,000 95,000 1. Determine the unit product cost under: a. Absorption costing Variable costing. 2. Prepare contribution format variable costing income statements August. for July and 3. Reconcile the variable costing and absorption costing net operating income figures. 4. The company's Accounting Department has determined the company's brea 16,000 units per month, computed as follows: even Fixed cost per month $560,000 16,000 units Unit contribution margin $35 per unit