Spaulding Manufacturing Company 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 the months of 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. Variablecosting.

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Product X ProductY ProductZ 20,000 Number of units sold.. Number of orders received Selling price per unit . Cost per unit... 30,000 5,000 S 50 S 30 20,000 1,000 S 100 S 75 2,500 S 75 S 50