|https/ actice HW7 Help Sa 4 Exercise 7-6 Variable and Absorption Costing Unit Product Costs and Income Statements ILO Lynch Company manufactures and sels a single product. The following costs were incurred duringthe company's lirst year of incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor $13 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $320,e00 $238,688 During the year, the company produced 32,000 units and sold 17,000 units. The selling price of the company's product is $53 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. K Prev 4 of 6 Score answer > Type here to search