The Best Company produces and sells a single product. The following data refer to the year just completed: Beginning inventory Units produced 32,200 Units sold 26,600 Selling price per unit 422 Selling and administrative expenses: Variable per unit 19 Fixed per year 452,200 Direct manufacturing costs: Direct materials cost per unit 236 Direct labor cost per unit 79 Variable manufacturing overhead cost per unit 34 Fixed manufacturing overhead per year 450,800 Assume that direct labor is a variable cost. Required: (i) Compute the unit product cost under both the absorption costing and variable costing approaches. (4 marks) (ii) Prepare an income statement for the year using absorption costing. (5 marks) (iii) Prepare an income statement for the year using variable costing. (7 marks) (iv) Reconcile the absorption costing and variable costing net operating income figures in (ii) and (ili) above, and explain why the net operating income figures are different. (2 marks)