Question 2 Formonix produces only one product. The following data is available for the latest period of operations: The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 3,500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare income statements under variable costing for the end of the period. d. Prepare income statements under absorption costing for the end of the period. e. Reconcile the variable costing and absorption costing net operating incomes for the month