Variable and Absorption Costing Unit Product Costs and Income Statements[LO1, LO2]

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:

CoursHeroTranscribedText: Variable costs per unit: Manufacturing: Direct materials ................... $6 Direct labor ....................... $9 Variable manufacturing overhead ...... $3 Variable selling and administrative ........ $4 Fixed costs per year: Fixed manufacturing overhead .......... $300,000 Fixed selling and administrative ......... $190,000