ment chapter 8, Variable Costing Question 1 (of 2 2000 points Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below Manufacturing costs: Variable costs per unit Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) $500,850 Variable Fixed (total) S 192 S 19 Selling and administrative costs 15 % of sales $343.440 Zurgot regards all of its workers as ful-time employees, and the company has a tong-standing no- layoff policy Furthermore, production is highly automated Accordingty.the company includes its labour costs in its fixed manufacturing overhead The tabies sell for $528 each During the first month of operations, the following activity was recorded Units proouced4.770 Units sold 3,720 Type here to search hp 144 12 3 45 678 Required: 1. Compute the unit product cost under each of the following costing method Absorption costin a. b. Variable costing 2. Prepare an income statement for the month using absorption costing (Do not leave any empty spaces; input a 0 wherever it is required.) Cost of goods sold 3. Prepare a contribution format income statement for the month using varlable costing. (Do not leave any empty spaces; input a 0 wherever it is required.) O Type here to search 3. Prepare a contribution format income statement for the mo any emply spaces; mput a 0 wherever it is required.) sung (Do not leave Variable expenses Variable cost of goods sold Fixed expenses: 4. Not available in Connect 5. Reconaile the absorption costing and variable costing operating income tigures in (2) and (3) above. Variable costing operating income (oss) Add Fixed manufacturing overhead cost deferred in inventory under absorpton costing Absorption costing operating income (loss) Type here to search cs hp