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Stuart Company incurred manufacturing overhead cost for the year as follows. The company produced 1,300 units and sold 800 of them at $181.00 per unit.

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Stuart Company incurred manufacturing overhead cost for the year as follows. The company produced 1,300 units and sold 800 of them at $181.00 per unit. Assume that the production manager is paid a 2 percen bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Prepare an income statement using absorption costing. Complete this question by entering your answers in the tabs below. Prepare an income statement using variable costing. Complete this question by entering your answers in the tabs below. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

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