Required:

1. Assume that the company uses absorption costing:

a. Compute the unit product cost.

2. Assume that the company uses variable costing:

a. Compute the unit product cost.

Check my work 8 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: 6 points Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 14 $ 3 $ 1 $ 1 eBook Hint $ 330,000 $ 240,000 Print References During the year, the company produced 33,000 units and sold 24,000 units. The selling price of the company's product is $44 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 28