5 Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements LO6-1, LO6-2 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations 2 points eBook Variable costs per unit Manufacturing: Hint Direct materials 12 Direct labor Variable manufacturing overhead Variable selling and administrative Print Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative $366,000 $278,88 During the year, the company produced 36,000 units and sold 18,000 units. The selling price of the company's product is $55 per unit. Required 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year