The Dean Corporation produces and sells a single product. The following data refer to the year just completed:

Beginning inventory		0
Units produced		26,800
Units sold		25,800
Selling price per unit	$	418
Selling and administrative expenses:
Variable per unit	$	18
Fixed (total)	$	335,400
Manufacturing costs:
Direct materials cost per unit	$	231
Direct labor cost per unit	$	52
Variable manufacturing overhead cost per unit	$	39
Fixed manufacturing overhead (total)	$	348,400

Assume that direct labor is a variable cost.

Required:

a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

b. Prepare an income statement for the year using absorption costing.

c. Prepare a contribution format income statement for the year using variable costing.

d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.