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

3-53 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 overhead rate. Manufacturing costs are as follows:

Direct materials $123,000

Direct labor $93,000

Variable overhead $65,000

Fixed overhead $51,000

PART #1: Prepare an Absorption-Costing Income Statement down to Operating Income

PART #2: Then prepare a Variable-Costing Income Statement in proper format down to Operating Income