Variable Costing 10 Marks Rise and Grind Coffee Co. has just created a new division to manufacture and sell single-cup coffee makers under license from a major single-cup coffee producer. The facility is highly automated and so has high monthly fixed costs, as shown in the following schedule of budgeted monthly costs. This schedule was prepared based on an expectation of a monthly production volume of 1.500 units. During August, the division's first month, the following activity was recorded: Units produced .......... Units sold .... Selling price per unit 1,500 1,200 $ 55 10 Manufacturing costs: Variable cost per unit: Direct materials Direct labour.. Variable overhead..... Total fixed overhead .. Selling and administrative costs: Variable ... Fixed ...... $ 30,000 5% of sales 8,000 Required 1. What is the unit cost under variable costing? 2. Prepare an income statement for the month ended August 31, under variable costing