Variable and Absorption Costing Unit Product Costs and Income Statements Ball Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Do not round intermediate calculations. Show your work. Variable costs per unit Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Flund costs per year Fixed manufacturing overhead Fused selling and administrative $23 $14 $6 55 240.000 580.000 During its first year of operations, Ball produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $53 per unit. Don't get flustered if the company shows a loss Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1