Fanning Company incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing...

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Fanning Company incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing overhead Variable Fixed ($18.20/unit for 1,900 units) Variable selling and administrative expenses ook Fixed selling and administrative expenses nt int ences $ 38.30/unit $ 26.30/unit $ 11.00/unit $ 34,580 $ 8,540 $ 14,100 The company produced 1,900 units and sold 1,400 of them at $180.90 per unit. Assume that the production manager is paid a percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Required A Required B Required C Fanning Company incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing overhead Variable Fixed ($18.20/unit for 1,900 units) Variable selling and administrative expenses ook Fixed selling and administrative expenses nt int ences $ 38.30/unit $ 26.30/unit $ 11.00/unit $ 34,580 $ 8,540 $ 14,100 The company produced 1,900 units and sold 1,400 of them at $180.90 per unit. Assume that the production manager is paid a percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? Complete this question by entering your answers in the tabs below. Required A Required B Required C