Exercise 6-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements (L06-1, LO6-2 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 ved costs per year Fixed manufacturing overhead Fixed selling and administrative 12 1 1 1 $ $325.000 $234.000 During the year, the company produced 27.000 units and sold 23,000 units. The selling price of the company's product is $42 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost. b. Prepare an income statement for the year 2. Assume that the company uses variable costing a. Compute the unit product cost b. Prepare an income statement for the year Answer is not complete Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 20 Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement Sales $ 966,000 Variable expenses Variable selling and administrative expense S 368,000 $ Variable cost of goods sold 23.000 > Contribution margin Fixed expenses 391,000 575.000 Fixed manufacturing overhead Faced selling and administrative 23,000 Net operating income 23,000 $ 552,000