UHF Antennas, Inc., produces and sells a unique television antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been reported for the first month of the new plant's operation:

Management is anxious to see how profitable the new antenna will be and has asked that an income statement be prepared for the month. Assume that direct labor is a variable cost. Required: a. Assuming that the company uses absorption costing, compute the unit product cost and prepare an income statement. b. Assuming that the company uses variable costing, compute the unit product cost and prepare an income statement. c. Explain the reason for any difference in the ending inventories under the two costing methods and the impact of this difference on reported net operating income.

3.

3. Explain how nonuniform inputs and multiple departments affect process costing.

4.

4. Explain why cost-volume-profit analysis can be useful to managers.

35,000 30,000 $50 Units produced.... Selling price per unit. Selling and administrative expenses Variable per unit. Fixed (total $2 .$360,000 Manufacturing costs Direct material cost per unit............. Direct labor cost per unit. Variable manufacturing overhead cost per unit. Fixed manufacturing overhead cost (total). $9 $8 $3 (total)$350,000