Exercise 11-16A Variable costing versus absorption costing LO 11-4 Walton Company incurred manufacturing overhead cost for the year as follows: $ 38.80/unit $ 27.80/unit Direct materials Direct labor Manufacturing overhead Variable Fixed ($19.90/unit for 1,600 units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 12.10/unit $31,840 $ 8,140 $15, 100 The company produced 1,600 units and sold 1,100 of them at $181.90 per unit. Assume that the pro bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement using absorption costing. Complete this question by entering your answers in the tabs below. Required A. Required B Required c Prepare an income statement using absorption costing. WALTON COMPANY Income Statement (Absorption Costing) Cost of goods Sold Required A Required B Required c Determine the manager's bonus using each approach. Which approach would you recommend for inte your intermediate calculations and final answers to the nearest whole dollar amount.) Absorption costing Variable costing Which approach is recommended?