Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 18 Variable nanufacturing overhead $ 2 Variable selling and administrative $1 Fixed costs per year: Fixed manufacturing overhead $ 240,000 Fixed selling and administrative expenses $ 60,000 During its first year of operations, Walsh 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 $52 per unit. 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 Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2A Reg 20 Reg Assume the company uses variable costing Compute the unit product cost for year 1 and year 2 Year 1 Year 2 innocent Reg 1A Reg 1B Reg 2A Reg 28 Reg 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2 Year 1 Year 2 Unit product cost SReg 1A Reg 1B > lepale dl c Tory Walsh Company Income Statement Year 1 Year 2 + Net operating income (loss) costing. Prepare an income statement for Year 1 and Year calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Year 2 Net operating income (loss) Valde.) Year 1 Year 2 Wanable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss)