Variable costing Question 2 Brock Company produces and sells an industrial product. The company has just opened a new plant to manufacture the product, and the following cost and revenue data have been provided for the first month of the plant's operation: Beginning inventory 0 Units produced 40,000 Units sold 35,000 Selling price per unit $60 Selling and administrative expenses: Variable per unit $2.00 Fixed (total) $560,000 Manufacturing costs Direct materials cost per unit $15.00 Direct labour cost per unit $7.00 Variable manufacturing overhead cost per unit $2.00 Fixed manufacturing overhead cost (total) $640,00 Required: (a) Determine the unit product costs assuming the company uses absorption costing and Prepare an income statement for the month. (b) Determine the unit product costs assuming the company uses absorption costing and Prepare an income statement for the month. (c) 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