Problem $8-15$ Prepare and Reconcile Variable Costing Statements $[$LO$1,$ LO$2,$ LO$3,$ LO$4]$

Audiophonics Limited manufactures and sells high$-$qualify and durable ear buds for use with personal electronics that are custom

moulded to each customer's ear, Cost data for the product follow:

Vartable colta per uniti

Direet naterials

Direct Laborx

Vartabie ractory eyerpead

Total varlable conta per undt

$r$ twed stess per monhs

Fired manutacturing orrerhead

fotal tixed coet pox monkh

The product sels for $$65$ per unit. Pnoduction and sales dota for May end June, the first two months of eperations, are as follows:

Income statements prepared by the Accounting Department using absorption costing are presented belowr.

Aequired:

Determine the unit product cost under each of the following methods.

Prepare variable costing income stanements for May and June vsing the conribution aporoach. tho net leave amy empty spaces:

input a $0$ wherever it is required.

Reconcle the wariable costing and absorption costing operating income foures. thess amoums should be indicated with a minus

sign.$]$