Question 30: The Dean Corporation produces and sells a single product. The following data refer to the year just completed:

Beginning inventory		0
Units produced		32,800
Units sold		29,000
Selling price per unit	$	452
Selling and administrative expenses:
Variable per unit	$	23
Fixed (total)	$	406,000
Manufacturing costs:
Direct materials cost per unit	$	228
Direct labor cost per unit	$	51
Variable manufacturing overhead cost per unit	$	35
Fixed manufacturing overhead (total)	$	557,600

Assume that direct labor is a variable cost.

Required:

a.	Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

b.	Prepare an income statement for the year using absorption costing.

c.	Prepare a contribution format income statement for the year using variable costing.

d.	Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.