P7-2B

l and vanable costing 2. Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for LO2 Trenton Products, Inc., are as follows: $8,000,000 Production costs (210,000 units): Direct labor.. Manufacturing overhead: 2,100,000 .680,000 ..1,260,000 1,050,000 Fixed Operating expenses 560,000 640,000 Required a. Prepare an income statement based on full absorption costing. b. Prepare an income statement based on variable costing