uestion completion Status: QUESTION 1 TehnoHigh LLC manufactures smart tablets in Los Angeles, USA that is sold for $200 per unit in two markets: USA and Canada. The company has just opened a new plant that will be marketed throughout Canada. The following cost and revenue data relate to May, the first month of the plant's operation: Units Sold 35,000 units Units Produced 40,000 units Manufacturing Cost per unit: Direct Materials $75 Direct Labor $50 Variable Manufacturing Overhead 520 Fixed manufacturing Overhead $300,000 Selling and Administrative Expenses Fixed for the year $ 200,000 Variable expenses per unit $15 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. (4 marks) b. Prepare an income statement for May ( 11 marks) 2. Assume that the company uses variable costing. a. Determine the unit product cost. (5 marks) b. Prepare a contribution format income statement for May (10 marks) 3- Explain the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operating income