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 unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) $ 201 $ 20 $563,880 5% of sales $ 257,520 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 $508 each. During the first month of operations, the following activity was recorded: Units produced Units sold 4,440 3,310 Required: 1. Compute the unit product cost under each of the following costing method. Required: 1. Compute the unit product cost under each of the following costing method. Answer is complete and correct. Unit Product Cost 348 a Absorption costing Variable costing b. 221 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is required.) Answer is not complete. $ 1,681,480 Sales Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory 0 0 1,681,480 Gross margin Selling and administrative expenses Operaing income $ 1,681,480 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.) Answer is not complete. Sales Variable expenses: Variable cost of goods sold: Beginning inventory Add: Variable manufacturing costs 0 Less: Ending inventory Variable cost of goods sold 0 0 0 Fixed expenses: Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense Operating income 0 $ 0 4. Not available in Connect. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Answer is not complete. Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) $ 0