VariablevsAbsorptionCosting.

Here'ssomeinformationconcerningtheestimatedcostsof AncientOneProductsInc., concerning their production and sales of Celestial Orbs

DirectMaterials	$ 120
DirectLabor	30
VariableManufacturingOverhead	7
VariableSelling	9% of Revenues
FixedManufacturingOverhead	$600,000
FixedSellingandAdministrativeCosts	200,000

Thefirmexpectstoproduce30,000Orbsduringtheperiod. The firm expects to sell 25,000 Orbs during the period.

ThebeginninginventoryofOrbsis0(none). Expected selling price per Orb is: $310.

Required: 1)Computeunitcostonavariable-costbasis.

1. Computeunitcostonanabsorption-costbasis.
2. Prepareavariable-costincomestatement.
3. Prepareanabsorption-costincomestatement.