Wave Specialists Co. manufactures surf boards, which sell for $565 each. The variable costs of production (per unit) are as follows: Direct Material Direct Labour Variable Manufacturing Overhead $200 110 80 Budgeted fixed overhead in 2019 was $400,000 and budgeted production was 50,000 surf boards. Wave Specialists achieved their planned production for the year. Sales for the year were 47,000 units; variable selling and administrative costs were $5 per unit sold; total selling and administrative costs were $310,000 Required: 1. Calculate the product cost per surfboard under: (3 marks) a. absorption costing, and b. variable costing 2. Prepare operating income statements for the year using: (11 marks) a. absorption costing, and b. variable costing 3. Prepare a reconciliation of the differences between the two methods and explain these differences. (6 marks)