Provide the best answer to the following questions. This assignment relies on the concepts discussed in Chapter 4A. The assignment is

worth 15 points, and is due on Friday, September 24 (you can send it to me by email). Please show your work for partial credit.

I) XYZ Company manufactures and sells one product. The following information pertains to the

company's first year of operations:

Variable costs per unit:

Direct materials

Fixed costs per year:

Direct labor

Fixed manufacturing overhead

Fixed selling and administrative expense

$80

$1,404,000

$3,402,000

$1,617,000

The company does not have any variable manufacturing overhead costs or variable selling and

administrative expenses. During its first year of operations, the company produced 54,000 units

and sold 49,000 units. The company's only product is sold for $238 per unit.

Required:

a. (3 points) Assume the company uses super-variable costing. Determine the unit product cost for

the year.

b. (10 points) Assume the company uses super-variable costing. Prepare an income statement for

the year using super-variable costing.

c. (2 points) Briefly describe why companies use super-variable costing