Question Two (60 points) The following data relate to Sunday Company, a new corporation. During the first year, the company produced 100,000 units and sold 90,000 units: Selling Price $16 Direct materials used $5 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 300,000 Selling and administrative expenses: Variable 0.45 Fixed 250,000 2 1.2 Required A. Compute the unit product cost under absorption costing and variable costing systems. (20 Points) B. Prepare the income statement using the variable costing system. (40 points) in class Assignment 2 (Individual) - 2020-2021 Page 3 of 4 Question Two (60 points) The following data relate to Sunday Company, a new corporation. During the first year, the company produced 100,000 units and sold 90,000 units: Selling Price $16 Direct materials used $5 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 300,000 Selling and administrative expenses: Variable 0.45 Fixed 250,000 2 1.2 Required A. Compute the unit product cost under absorption costing and variable costing systems. (20 Points) B. Prepare the income statement using the variable costing system. (40 points) in class Assignment 2 (Individual) - 2020-2021 Page 3 of 4