Problem $4$A$-4($Algo$)$ Super$-$Variable Costing and Variable Costing Unit Product Costs and Income Statements $[$LO$4-2,$ LO$4-6]$

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations:

Variable cost per unit:

Direct materials

Fixed costs per year:

Direct labor

Fixed manufacturing overhead

Fixed selling and administrative expenses

$$32$

$ $1,900,000$

$$851,800$

$$302,000$

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced $76,000$ units and sold $76,000$ units. During its second year of operations, it produced $76,000$ units and sold $71,000$ units. In its third year, Ogilvy produced $76,000$ units and sold $81,000$ units. The selling price of the company's product is $$73$ per unit.

Required:

Assume the company uses super$-$variable costing:

a$.$ Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

b$.$ Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$

Assume the company uses a variable costing system that assigns $$25$ of direct labor cost to each unit produced:

a$.$ Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

Reconcile the difference statement for Year $1,$ Year $2,$ and Year $3.$

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