Variable manufacturing overhead$4Fixed manufacturing overhead per year$ 96,000Selling and administrative expenses:Variable selling and administrative expense per unit sold$ 5Fixed selling and administrative expense per year$ 65,000Year 1Year 2Units in beginning inventory02,000Units produced during the year8,0006,000Units sold during the year6,0005,000Units in ending inventory2,0003.000Required:a. Assume the company uses absorption costing. Compute the unit product cost in each year.b. Assume the company uses variable costing. Compute the unit product cost in each year.c. Assume the company uses absorption costing. Prepare an income statement for each year.d. Assume the company uses variable costing. Prepare an income statement for each year.e. Prepare a report in good form reconciling the variable costing and absorption costing net incomes.