nt 3 i Help Exercise 11-16A Variable costing versus absorption costing LO 11-4 Adams Company incurred manufacturing overhead cost for the year as follows: 39.20/unit s 27.40/unit ad Variable Fixed ($20.00/unit for 1,500 units) 10.10/unit $30,000 s 6,300 $14,100 and The company produced 1,500 units and sold 1,000 of them at $182.00 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? b. Prepare an income statement using variable costing. Complete this question by entering your answers in the tabs below. Prepare an income statement using absorption costing