Problem 8-35 VariableaCosting and Absorption-Costing Income Statements (LO 3-2. 83. 8-4. 8-6] Great Outdoze Company manufactures sleeping bags. which sell for $65.30 each. The variable costs of production are as follows: Direct material. $19.?!) Direct labor 10.?0 Variable manufacturing overhead 6.20 Budgeted xed overhead in 20:41 was $234300 and budgeted production was 29.000 sleeping bags. The year's actual production was 29.000 units. of which 25,400 were sold. Variable selling and administrative costs were $1.40 per unit sold: xed selling and administrative costs were $22,000. Required: 1. Calculate the product cost per sleeping bag under {a} absorption costing and {b} variable costing. 2-3. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method. 9 Answer Is not complete. complete this question by entering your answers In the tabs below. Prepare an operating income statement for the year using absorption costing. (Do not round Intermediate calculations.) 1.1mm 1.152.200 o Req 1 Req 2A Req 2B Reg 3 Prepare an operating income statement for the year using variable costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Variable Costing Variable expenses: $ 0 Fixed expenses: $ 0Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Reconcile reported operating income under the two methods using the shortcut method. (Round your predetermined fixed overhead rate to 2 decimal places.) Change in inventory (in units) Predetermined fixed overhead Absorption-costing income rate minus variable-costing income unit increase X