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) $ 173 $ 20 $694,665 10% of sales $387,720 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 5,385 4,130 Required: 1. Compute the unit product cost under each of the following costing method a Absorption costing Variable costing Unit Product Cost 322 193 2. Prepare an income statement for the month using absorption costing (Do not leave any empty spaces; Input a o wherever it is required.) $ 2,098,040 Sales Cost of goods sold $ 82,600 82,600 82,600 2,015.440 Operaing income $ 2015,440 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 Variable expenses Variable cost of goods sold: 0 0 0 0 Fixed expenses oo $ 4. Not available in Connect. 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) S 0