Problem 3 (20 points) We manufacture and sell toy remote control boats. Information for this problem: Manufacturing costs: Fixed overhead Variable overhead Direct labor Direct materials $100,000 $5 per boat $7 per boat $10 per boat Beginning inventory Boats produced Boats sold 3,000 boats 50,000 46,000 Selling and administrative costs: Fixed Variable $300,000 $6 per boat sold The boat sells for $150 Absorption Method A. Calculate cost for one unit using absorption method: Total B. Complete the Absorption Income Statement: Variable Method C. Calculate cost for one unit using Variable method: Total 4. Variable Method Income Statement