Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Inqome Statements [LO6 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 Fixed manufacturing overhead Fixed selling and administrative $13 $7 $ 1 $1 $ 288,000 $198,000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's product is $48 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 2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year Lynch Company Variable Costing Income Statement Variable expenses: Fixed expenses