Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$ 96
Units in beginning inventory	600
Units produced	1,990
Units sold	2,140
Units in ending inventory	450
Variable costs per unit:
Direct materials	$ 26
Direct labor	$ 20
Variable manufacturing overhead	$ 2
Variable selling and administrative expense	$ 17
Fixed costs:
Fixed manufacturing overhead	$ 43,780
Fixed selling and administrative expense	$ 6,420

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.

Required:

a. What is the unit product cost for the month under variable costing?

b. Prepare a contribution format income statement for the month using variable costing.

c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)

PLEASE BOLD ANSWERS

Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the unit product cost for the month under variable costing? Cost per Unit Variable costing Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expenses $ 0 0 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 0 Net operating income $ 0 Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Less: Fixed manufacturing overhead costs released from inventory under absorption costing Absorption costing net operating income (loss)