Exercise 7-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, L07-2] 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 Fixed costs per year. Fixed manufacturing overhead Fixed selling and administrative UM 12 7 S 248.60e $158.382 During the year, the company produced 31.000 units and sold 21.000 units. The selling price of the company's product is $44 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 at the company uses variable costing a. Compute the unli product Cost b. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Compute the unit product cost. Assume that the company uses absorption costing Unit product cost Re18 TO