Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs Variable costs per units Direct materials Variable manufacturing overhead Selling and administrative costs: Variable $ 174 10 Fixed manufacturing overhead costs (total) $575,230 Fixed (total) 15 of sales $367,770 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $535 each. During the first month of operations, the following activity was recorded: Units produced " Units sold 4,715 3,540 Required: 1. Compute the unit product cost under each of the following costing method. a. Absorption costing b. Variable costing Unit Product Cost 306 184 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) Sales Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory Gross margin Selling and administrative expenses Operaing income $ 0 0 $ 1,893,900 0 1,893,900 6,511,855 $ (4,617,955) 3. Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces: input a 0 wherever it is required.) Sales Variable expenses Variable cost of goods sold Beginning inventory $ 0 Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold 0 Variable selling and administrative expense Contribution margin Fixed expenses $ 1,893,900 1,893,000 Sales Variable expenses: Variable cost of goods sold: Beginning inventory Add: Variable manufacturing costs ed Goods available for sale Less: Ending inventory ok int $ 0 0 Variable cost of goods sold 0 Variable selling and administrative expense Contribution margin Fixed expenses: Fixed manufacturing overhead $ 1,893,900 0 1,893,900 Fixed selling and administrative expense Operating income 0 $ 1,893,900 rences 4. This part of the question is not part of your Connect assignment. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss)