Can I please have some help with Chapter 9 problem 22? I have been trying to to resolve it but I get confuse with absorption and variable costing. Thank you in advance.

Grunewald Company manufacturers a professional grade vacuum cleaner and began operations in 2011. For 2011, Grunewald budgeted to produce and sell 20,000 units. The company had no price, spending, or efficiency variances, and writes off production-volume variance to cost of goods sold. Actual data for 2011 are given as follows:

Units produced $18,000

Units sold $17,500

Selling price $425

Variable cost:

Manufacturing cost per unit produced

Direct materials $30

Direct manufacturing labor $25

Manufacturing overhead $60

Marketing cost per unit sold $45

Fixed costs:

Manufacturing costs $1,100,000

Administration costs $965,450

Marketing $1,366,400

*Prepare a 2011 income statement for Grunewald Company using variable costing.

*Prepare a 2011 income statement for Grunewald Company using absorption costing.