Munoz Company incurred manufacturing overhead cost for the year as follows. $ 38.30/unit $ 26.10/unit Direct materials Direct labor Manufacturing overhead Variable Fixed ($18.50/unit for 1,200 units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 10.90/unit $22, 200 $ 5,530 $16,000 The company produced 1,200 units and sold 700 of them at $181.80 per unit. Assume that the production manager is paid a 1 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Required A Required B Required C Prepare an income statement using absorption costing. MUNOZ COMPANY Income Statement (Absorption Costing) Cost of goods Sold Required A Required B Required C Prepare an income statement using variable costing. MUNOZ COMPANY Income Statement (Variable Costing) Variable costs Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended