Biscayne Industries has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year:
Direct materials............................... $ 5
Direct labor................................... 4
Variable factory overhead.................... 3
Fixed factory overhead....................... 3
Total cost..................................... $15
Operating statistics for March and April include the following:

The selling price is $20 per unit. There were no inventories on
March 1, and there is no work in process on April 30.
Required:
Prepare comparative income statements for each month under each of the following:
1. Absorption costing (include under- or overapplied fixed overhead).
2. Variable costing.

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Units produced Units sold.... Selling and administrative March April 2,000 8,000 8,000 12,000 expenses (all fixe $12,000 $12,000