Walton Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39.00/unit Direct labor $ 27.40/unit Manufacturing overhead 20 Variable $ 11.60/unit _ Fixed ($19.90/unit for 1,000 units) $19,900 pOInts Variable selling and administrative expenses $ 3,800 Fixed selling and administrative expenses $14,700 The company produced 1,000 units and sold 500 of them at $182.10 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Req uired a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. WALTON COMPANY Income Statement (Absorption Costing) Cost of goods Sold Required A Required B Required C Prepare an income statement using variable costing. WALTON COMPANY Income Statement (Variable Costing) Variable costs Required A Required B Required C Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Round your intermediate calculations and nal answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended?