Problem 1 Magikarp company produces and sells baseball. The operating costs for the past year were: Variable cost per unit: Direct Labor P 0.50 Direct Materials P 1.00 Variable Overhead P 0.25 Variable selling P 0.10 Fixed costs per year: Fixed overhead P175,000.00 Selling and administrative P 60,000.00 During the year, Magikarp produced 350,000 baseballs and sold 325,000 at P3.50 each. Magikarp had no beginning finished goods inventory. An actual cost system is used for product costing. Required: 1 Prepare a detailed Income statement under Absorption costing 2 Prepare a detailed Income statement under Variable costing