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

Beginning inventory	0
Units produced	25,200
Units sold	22,800
Selling price per unit	$ 421
Selling and administrative expenses:
Variable per unit	$ 18
Fixed per year	$ 501,600
Manufacturing costs:
Direct materials cost per unit	$ 237
Direct labor cost per unit	$ 57
Variable manufacturing overhead cost per unit	$ 35
Fixed manufacturing overhead per year	$ 428,400

Assume that direct labor is a variable cost.

Required:

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

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 income figures in (b) and (c) above.

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. . Prepare an income statement for the year using absorption costing. . Prepare an income statement for the year using variable costing. . 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. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using absorption costing. Prepare an income statement for the year using variable costing. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) abov