Production costs

Direct materials $ 1.80 per unit

Direct labor $.30

Variable overhead. $ 495,000 in total

Fixed overhead. $450,000 in total

Nonproduction costs

Variable selling and administrative $18,000 in total

Fixed selling and administrative $53,000 in total

a. Prepare Stonehenge's December 31 income statement for the current year under absorption costing.

b. Prepare Stonehenge's December 31 income statement for the current year under variable costing.