Munoz Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39.70/unit Direct labor $ 27.70/unit Manufacturing overhead Variable $ 10.60/unit Tixed ($19.50/unit for 1,500 units) $29, 250 Variable selling and administrative expension $ 6,200 Fixed selling and administrative expenses $15,000 The company produced 1,500 units and sold 1,000 of them at $182.10 per unit. Assume that the production manager is paid a 2 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. MUNOZ COMPANY Income Statement (Absorption Costing) Revenues Cost of goods Sold Direct materials 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? Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare an income statement using absorption costing. MUNOZ COMPANY Income Statement (Absorption Costing) Revenues Cost of goods Sold Direct materials Direct labor Manufacturing overhead Gross margin Selling and administrative expenses Net income $ Required B > puon cos b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend fo Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare an income statement using variable costing. MUNOZ COMPANY Income Statement (Variable Costing) Variable costs ol 0 Required A Required B Required Determine the manager's bonus using each approach. Which approach would you recommend for internal your intermediate calculations and final answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended?