Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements CLO6-1, 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 10 Direct materials 5 Direct labor 1 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 385,000 Fixed manufacturing overhead 295,000 Fixed selling and administrative During the year, the company produced 35,000 units and sold 17.000 units. The selling price of the company's product is $58 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. Lynch Company Absorption Costing Income Statement