Production and sales information: Productions Sales

Unit selling price $300

Budgeted production and sales units $10000 $10000

Actual production and sales units $11000 $9000

Other amounts and information:

Direct material per unit(budgeted and actual all years) $110

Direct labor per unit(budgeted and actual all years) $85

Variable manufacturing overhead per unit $15

budgeted fixed manufacturing overhead $460000

Actual fixed manufacturing overhead $460000

Fixed selling and administrative expenses $170000

Sales commissions 5%

Standard costing is used. There are no flexible budget variances

Show the production volume variance as a separate line item but assume it is closed to cost of goods sold.

Beginning inventory in units is zero.

Required

i) prepare multiple step income statements using absorption costing.

ii)prepare multiple step income statements using variable costing.