Zachary Company incurred manufacturing overhead cost for the year as follows.

The company produced $1,900$ units and sold $1,400$ of them at $$181\mathrm{.}90$ per unit. Assume that the production manager is paid

a $1$ percent bonus based on the company's net income.

Required

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?