Exercise 5-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO5-1, L05-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations $ Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fbxed manufacturing overhead Fixed selling and administrative $360,000 $ 270,000 During the year, the company produced 36,000 units and sold 18,000 units. The selling price of the company's product is $55 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost. Unit product cost O Type here to search a e b. Prepare an income statement for the year. Lynch Company Absorption Costing Income Statement 2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost otomonti for the b. Prepare an income statement for the year. Lynch Company Variable Costing Income Statement Variable expenses Fixed expenses