The Dorset Corporation produces and sells a singte product. The following data refer to the year just completed: sume that direct labor is a variable cost. Compute the unit product cost under both the absorption costing and variable costing approaches. quirect: repare an income statement for the year using absorption costing. repare an income statement for the year using variable costing. econcile the absorption costing and variable costing net operating income figures in (b) and (c) above. pute the unit product cost under both the absorption costing and variable costing approaches