The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 34,500 Units sold 26,800 Selling price per unit $ 490 Selling and administrative expenses: Variable per unit $ 16 Fixed per year $ 616,400 Manufacturing costs: Direct materials cost per unit $ 254 Direct labor cost per unit $ 55 Variable manufacturing overhead cost per unit $ 33 Fixed manufacturing overhead per year $ 552,000 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: O 34,500 28.808 498 $ Beginning inventory Units produced Units sold selling price per unit selling and adeinistrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year 6 16 $616, 489 $ 254 $ 55 $ 33 $552,988 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, 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) above