Ms$.$ Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for

a bank loan. Another frlend, a CPA, Insists that the company should be using absorption costing rather than varlable costing and

argues that If absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms$.$ Tyler is manufacturing only one product$-$a swmsult. Production and cost data relating to the swimsult for the first

quarter follow:

Units produced

Units sold

Variable costs per unit:

Direct materials

Direct labor

Variable manufacturing overhead

Variable selling and administrative

$31,30$

$28,30$

$$7\mathrm{.}5$

$$6\mathrm{.}9$

$$1\mathrm{.}6$

$$6\mathrm{.}5$

Required:

Complete the following:

a$.$ Compute the unit product cost under absorption costing.

b$.$ What is the company's absorption costing net operating Income $($loss$)$ for the quarter?

c$.$ Reconcile the varlable and absorption costing net operating Income $($loss$)$ figures.

Durlng the second quarter of operations, the company agaln produced $31,300$ unlts but sold $34,300$ unlts. $($Assume no change in

total fixed costs.$)$

a$.$ What is the company's varlable costing net operating Income $($loss$)$ for the second quarter?

b$.$ What is the company's absorption costing net operating Income $($loss$)$ for the second quarter?

c$.$ Reconclle the varlable costing and absorption costing net operating Incomes for the second quarter.

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

Compute the unit product cost under absorption costing. $($Round your answer to $2$ decimal places.$)$

Unit product cost