HW Chapter 7 0 Saved Help Save 8: Exit Submit E Walsh Company manufactures and sells one product. The following information pertains to each ofthe compa ny's first two years of operations: 16766 Variable costs per unit: points Manufacturing: Direct materials $ 26 Direct labor $ 16 Variable manufacturing overhead $ 5 EBOOK Variable selling and administrative $ 4 Fixed costs per year: Hmt Fixed manufacturing overhead $ 248,969 Pit Fixed selling and administrative expenses $ 28,869 rn References During its first year of operations, Walsh produced 50.000 units and sold 40,000 units. During its second year of operations, it produced 40.000 units and sold 50,000 units. The selling price of the company's product is $55 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Red 23 Red 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Req1B &gt