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 suterials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) $ 171 5 13 $568,875 10% of sales $276,750 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 $460 each During the first month of operations, the following activity was recorded units produced Units sold 5,125 3,830 Required: 1. Compute the unit product cost under each of the following costing method. a Absorption costing b. Variable costing Unit Product Cost 295 184 2. Prepare an income statement for the month using absorption costing (Do not leave any empty spaces; input a 0 wherever it is required.) s 1,761,800 Sales Cost of goods sold Selling and administrative expenses $ 654,930 $ 1,761,800 Sales Cost of goods sold: Selling and administrative expenses $ 654,930 654,930 654,930 1,106,870 $ 1,106,870 3. Prepare a contribution format income statement for the month using variable costing (Do not leave any en wherever it is required.) 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.) Variable expenses Variable cost of goods sold: 0 0 0 0 Fixed expenses 0 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) $