Exercise 6-6 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 $ 11 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed nanufacturing overhead Fixed selling and administrative expenses 350,000 $268,000 During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the company's product is $46 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 Complete this question by entering your 'answers in the tabs below