Rundle Manufacturing Company makes a product that sells for $75.10 per unit. Manufacturing costs for the product amount to $26.40 per unit variable, and $74,550 fixed. During the current accounting period, Rundle made 3,500 units of the product and sold 3,100 units. Selling and administrative expenses were zero.

Required

1. Prepare an absorption costing income statement.

2. Prepare a variable costing income statement.