The Dorset Corporation produces and sells a single product, the data for which is as follows: Required: (a) Compute the unit product cost under both absorption and variable costing. (b) Prepare an income statement for the year using absorption costing. (c) Prepare an income statement for the year using variable costing. (d) Reconcile the absorption costing and variable costing net operating incomes. QUESTION \# 1 Health-Tex produces an impressive line of safety masks. The company has established the following selling and distribution support activity-cost pools and corresponding activity drivers: Required: 1. Determine the activity-cost-driver rate for each of the four selling and distribution activities. 2. If you were the accountant, how would you select the cost drivers for activity-based costing? 3. Explain how activity-based costing systems may provide more accurate product costs than traditional cost systems. QUESTION \#2 Hamiel Corporation produces and sells a single product, the data for which is as follows: Fixed expenses are $345,000 per month. The company is currently selling 5,550 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff; the proposal includes a commission of $27 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $104,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 420 units. What would be the overall effect on the company's monthly net operating income as a result of this change