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n3 Fine Leathers Company produces a ladies wallet and a men's wallet. Selected data for the past year follow: Ladies' Wallet Men's Wallet Production (units) 100.000 200.000 Sales (units) 90.000 210,000 Selling price $5.50 $4.50 Direct labor hours 30,000 80,000 Manufacturing Cost: Direct materials $ 75.000 $100,000 Direct labor 250,000 400,000 Variable overhead 20,000 24,000 Fixed overhead: Direct $ 50,000 $ 40,000 Common 20,000 20,000 Nonmanufacturing costs: Variable selling $ 30,000 $ 60,000 Direct fixed selling 35,000 40,000 Common fixed selling 25,000 25.000 - Common overhead totals 540,000 and is divided equally between the two products. *Common fixed selling costs total $50,000 and are divided equally between the two products. Budgeted fixed overhead for the year. $130,000, cqualed the actual fixed overhead. Fixed overhead is assigned to products using a plantwide rate based on expected direct labor hours, which were 130,000. The company had 10,000 men's wallets in inventory at the beginning of the year. These wallets had the same unit cost as the men's wallets produced during the year. Required: 1. Compute the unit cost for the ladies and mens wallets using the variable-costing method. Compute the unit cost using absorption costing 2. Prepare an income statement using absorption costing, 3. Prepare an income statement using variable casting