Required information Use the following information for the Exercise below. (Algo) [The following information applies to the questions displayed below.] Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead $ 32 per unit $ 22 per unit $ 10 per unit Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60,000 per year $2 per unit $29,000 per year Exercise 6-5 (Algo) Computing gross profit at different production levels LO P2 The company sells its product for $120 per unit. Compute gross profit using absorption costing assuming the company (a) produces and sells 3,000 units and (b) produces 4,000 units and sells 3,000 units. Gross profit using absorption costing (a) 3,000 Units Produced (b) 4,000 Units Produced and 3,000 Units Sold and 3,000 Units Sold Sales $ 360,000 $ 360,000 Cost of goods sold 252,000 252,000 Gross profit $ 108,000 $ 108,000