B E F G Cost and revenue data concerning Proctor Corporation's operations first two years appear below: $70 Selling price per unit Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative $25 10 4 8 - Fixed costs in total: Fixed manufacturing overhead Fixed selling and administrative $220,500 75,000 3 Data regarding units produced and sold for the first two years follow: 5 Year 1 Year 2 7 Units in beginning inventory 3 Units produced Units sold 0 Units in ending inventory 1 2 Note: Some green and blue highlighted areas may not need to be used. 3 0 10,500 9,000 1,500 1,500 10,000 10,600 900 Required: 51. Determine the unit product cost under absorption costing and variable costing for Year 1and Year 2. (6 marks) 5 Absorption Costing Variable Costing 3 Year 1 Year 2 Year 1 Year 2 1 2. 3 4 5 6 7 2. Unit product cost Prepare, in good form, operating income statements for Proctor Corporation for Year 2 only using a) Absorption Costing. (6 marks) 8 Supporting calculations 9 0 -1 -2 3 14 35 16 17 28 49 50 Operating income (loss) un Operating income (loss) b) Variable Costing (5 marks) Supporting calculations Operating income (loss) 3. Reconcile Proctor Corporation's operating income reported under absorption and variable costing for Year 2 only. Be specific about where the difference in operating income comes from. (3 marks) Supporting calculations Variable costing operating income (loss) o Absorption costing operating income (loss) 3