DOOR Absorption and Variable Costing with Over- and Underapplied Overhead Flaherty, Inc., has just completed its list year of operations. The unit costs on a normal costing basis are as follows: Manufacturing costs (per unit) Direct materials (4 lbs. $1.50) 56.00 Direct labor (0.5 h $10) 9.00 Variable overhend (0.5 hr. 6) 3.00 Fixed overhead (0.5 hr. $9) 4.50 Total $22.50 Sting and administrative costs Variable $2 per unit Fixed $230,000 During the year the company had the following activity Units produced 24,000 Units bold 21,300 Unit selling price 135 Direct inbor hours worked 12.000 Actual fixed overhead was $12.000 less than budgeted fixed overhead. Budgeted variable overhead was $5,000 less than the actual variable overhead. The company used an expecte overhead rates. Any overhead variances are closed to Cout of Goods Sold Required 1. Comote the unit cont uting () absorption costing and (b) variable costing Round your answers to the nearest centi Unit Cost Absorption costing Vanable costing 2. Prepare an absorption conting income statement Flaherty, Inc Absorption-Casting Income Statement For the First Year of Operations Le Check My Work AWORS TentSessionLocator=&inprogress=false ebook Absorption costing Variable costing 2. Prepare an absorption costing income statement Flaherty, Inc. Absorption-Costing Income Statement For the First Year of Operations Less Cross proft Operating income 3. Prepare a variable costing income statement Flaherty, Inc. Variable Costing Income Statement For the First Year of Operations Adde DI DO Contribution margir Operating income 4. Reconcile the difference between the two income statements The absorption costing generates an income than variable coating ams Check My Work All we