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 $65.20 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $20.00 10.30 6.60 Budgeted fixed overhead in 20x1 was $149,600 and budgeted production was 22,000 sleeping bags. The year's actual production was 22,000 units, of which 19,400 were sold. Variable selling and administrative costs were $2.00 per unit sold; fixed selling and administrative costs were $24,000. 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 Req 2A Req 2B Reg 3 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 Change in inventory (in units) 2,600 unit increase Absorption-costing income minus variable-costing income $ 6.80] =