Selected data forABC of past year of operations are presented below

Product A

Product B

Production [ in units ]

160000

300000

Sales [ in units ]

100000

250000

Selling price

$6.00

$5.00

DLHours

60000

90000

Manufacturing cost

DM [$]

80000

270000

DL [$]

240000

540000

Variable overhead

24000

30000

Fixed overhead

Direct

80000

50000

Common

25000

25000

Non manufacturing cost

Variable selling

80000

50000

Direct fixed cost

50000

65000

Common fixed cost

30000

30000

Budgeted fixed cost = $180000

Estimated Direct Labor hour = $150000

Company uses absorption cost based on direct labour hours

Beginning inventoryof product B= 5000 [same unit cost as produced during the year]

REQUIRED

1.Calculate product cost of product A using variable cost .

2.Calculate product cost of product A using absorption cost .

3.Calculate product cost of product B using variable cost .

4.Calculate product cost of product AB using absorption cost .

5.Calculate variable cost of goods for the year

6.Find the variable-costing net income

7.Calculatecost of goods for the year using absorption

8.Find thenet income using absorption method