Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4 Finch Company incurred manufacturing overhead cost for the year as follows. The company produced 1,400 units and sold 900 of them at $18160 per unit. Assume that the production manager is paid a 2 percer bonus based on the company's net income. Required 0. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approsch. Which appioach would you recommend for internal reporting? Complete this question bv entering vour answers in the tabs below. Prepare an income statement using absorption costing. Prepare an income statement usinn variahle rnetinn Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Rouns your intermediate calculations and final answers to the nearest whole dollar amount.)