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

Beginning inventory0

Units produced28,000

Units sold24,000

Selling price per unit $466

Selling and administrative expenses:

Variable per unit $21

Fixed per year $336,000

Manufacturing costs:

Direct materials cost per unit $296

Direct labor cost per unit $57

Variable manufacturing overhead cost per unit $34

Fixed manufacturing overhead per year $448,000

Assume that direct labor is a variable cost.

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

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

c.an 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.

Complete this question by entering your answers in the tabs below. Compute the unit product cost under both the absorption costing and variable costing approaches. Absorption costing $ 438 Variable costing $ 408 Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an income statement for the year using absorption costing. Absorption Costing Income Statement Sales $ 11, 184,000 Manufacturing overhead 9,672,000 Gross margin 1,512,000 Selling and administrative expenses 840,000 Net operating income 672,000 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an income statement for the year using variable costing. Variable Costing Income Statement Sales $ 1,184,000 Variable expenses: Variable cost of goods sold $ 9,792,000 Variable selling and administrative expenses 504,000 10,296,000 Contribution margin (9, 112,000) Fixed expenses: Fixed manufacturing overhead 448,000 Fixed selling and administrative expenses 336,000 784,000 Net operating income (9,896,000) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) abov Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Net operating income (loss) under variable costing $ 608,000 Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing 64,000 Net operating income (loss) under absorption costing $ 672,000