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

Beginning inventory		0
Units produced		25,300
Units sold		20,700
Selling price per unit	$	422
Selling and administrative expenses:
Variable per unit	$	15
Fixed (total)	$	393,300
Manufacturing costs:
Direct materials cost per unit	$	249
Direct labor cost per unit	$	53
Variable manufacturing overhead cost per unit	$	36
Fixed manufacturing overhead (total)	$	354,200

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.