Problem 8-35 Variable-Costing and Absorption-Costing Income Statements (LO 8-2, 8-3, 8-4, 8-6) Great Outdoze Company manufactures sleeping bags, which sell for $66.90 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.20 9.50 7.00 Budgeted fixed overhead in 20x1 was $166,400 and budgeted production was 26,000 sleeping bags. The year's actual production was 26,000 units, of which 23,100 were sold. Variable selling and administrative costs were $1.40 per unit sold; fixed selling and administrative costs were $27,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. 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. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Reg 3 Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Product Cost Per Unit Absorption costing Variable costing Req 1 Req 2A Reg 2B Req3 Prepare an operating income statement for the year using absorption costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Absorption Costing Selling and Administrative Expenses Req 1 Req 2A Reg 2B Req3 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 Fixed expenses: Req 1 Reg 2A Reg 2B Req3 Reconcile reported operating income under the two methods using the shortcut method. (Round your predetermined fixed overhead rate to 2 decimal places.) Predetermined fixed overhead rate II Change in inventory (in units) unit increase Absorption-costing income minus variable-costing income