Exercise 06-2 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of in-home decorative fountains, began operations on September 1 of the current year. Its cost and sales information for this year follows. Production costs Direct materials Direct labor Overhead costs for the year 35 per unit $ 55 per unit Variable overhead $2,200,000 2 Nonproduction costs for the year Variable selling and administrative Fixed selling and administrative $ 725,000 $4,500,000 Production and sales for the year Units produced Units sold Sales price per unit 110,000 units 80,000 units $360 per unit 1. Prepare an income statement for the company using variable costing SIMS COMPANY Variable Costing Income Statement Units produced Units sold Sales price per unit 110,000 units 80,000 units $360 per unit 1. Prepare an income statement for the company using variable costing SIMS COMPANY Variable Costing Income Statement