Change the total Direct Material cost to be $128,000. Additional Information: Assume the sales price per unit is $15.50. Assume variable selling expenses are $1.10 per unit sold. Assume fixed selling and administrative expenses total $154,000. Prepare an Absorption-Costing Income Statement down to Operating Income Then prepare a Variable-Costing Income Statement in proper format down to Operating Income. Note this exercise involves a situation where more units were made than sold.

Lane company produced 50,000 units during its first year of operations and sold 47,300 at $12 per unit. The company chose practical activity- at 50,000 units- to compute its predetermined over head rate. Manufacturing costs as follows.

Direct Materials: 123,000

Direct Labor: $93,000

Variable overhead: $65,000

Fixed Overhead: $51,000