[The following information applies to the questions displayed below.) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 54 $ 20 $ 6 $440,000 $115,000 -uiz 0 Saved He Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 54 $ 20 6 $440,000 $ 9 $115,000 1a. Assume the company uses absorption costing. Determine its product cost per unit. Per unit product cost using: Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Absorption costing 54.00 20.00 6.00 Cost per unit $ 80.00 Saved Help Save Assume the company uses absorption costing. Prepare its income statement for the year under absorption COOL SKY Absorption Costing Income Statement ales $ 4,160,000 ss: Variable costs Variable overhead costs Variable selling and administrative expenses $ 2,560,000 352,000 tal variable costs ontribution margin 2,912,000 1,248,000 xed overhead costs exed selling and administrative costs 440,000 100,000 otal fixed expenses et income (loss) 540,000 $ 708,000 Saved Help Sa Cool Sky reports the following costing data on its product for its first year of operations. During this first the company produced 40,000 units and sold 32,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year 54 $ 20 $ 6 $440,000 $ 9 $115,000 2a. Assume the company uses variable costing. Determine its product cost per unit. Per unit product cost using: Variable costing Cost per unit Help $440,000 Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 9 $115,000 2b. Assume the company uses variable costing. Prepare its income statement for the year under variat COOL SKY Variable Costing Income Statement Net income (loss)
