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

Beginning inventory $0$

Units produced $31,600$

Units sold $29,600$

Selling price per unit $ $414$

Selling and administrative expenses:

Variable per unit $ $21$

Fixed per year $ $621,600$

Manufacturing costs:

Direct materials cost per unit $ $216$

Direct labor cost per unit $ $50$

Variable manufacturing overhead cost per unit $ $37$

Fixed manufacturing overhead per year $ $379,200$

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.