Exercise 6.6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, 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 $13 Direct labor $10 Variable manufacturing overhead $3 Variable selling and administrative $ Fixed costs per year! Fixed manufacturing overhead $ 352,000 Fixed selling and administrative $ 262,000 During the year, the company produced 32.000 units and sold 27,000 units. The selling price of the company's product is $56 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