Please include formulas

Problem 4 A business operated at 100% of capacity during its first month and provided following information: Number of units produced: 5,000 units Production costs (5,000 units): $ Direct materials $70,000 Direct labor 20,000 Variable factory overhead 10,000 Fixed factory overhead 2,000 $102,000 Operating expenses: Variable operating expenses $17,000 Fixed operating expenses 1,000 18,000 1,000 units remain unsold at the end of the month and sales total $150,000 for the month. Required: Calculate: A. Income from rations and Ending inventory under the Absorption cos B. Income from operations and Ending inventory under the Variable costing. C. Explain the differences in income under the two costing systems. per unit Solution: A. Absorption costing Product costs per unit Sales COGS Gross profit Operating expenses Income from operations Ending inventory B Variable costing Product costs per unit Sales Total variable costs (VCOGS + VSA) Contribution margin Total fixed costs (Fixed OH + FSA) Income from operations per unit Ending inventory C