Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 108 770 2,400 2,850 320 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 23 24 2 11 $57,600 $ 5.700 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (Hint: Use the reconciliation method.) Required: a. What is the unit product cost for the month under variable costing? Answer is complete and correct. Cost per unit $ 49 Variable costing b. Prepare a contribution format income statement for the month using variable costing. Answer is complete but not entirely correct. PABBATTI CORPORATION Variable Costing Income Statement Sales $ 307,800 Variable expenses: Beginning merchandise inventory Variable cost of goods sold X $ 37,730 X 117,600 X 55,200 $ 57,600 Indirect materials Indirect labor 268,130 39,670 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense 57,600 5,700 10,800 X Fixed manufacturing overhead Net operating loss 74,100 (34,430) $