Problem 8-35 Variable-Costing and Absorption-Costing Income Statements (LO 8-2, 8-3, 8-4, 8-6) Great Outdoze Company manufactures sleeping bags, which sell for $65.40 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.20 10.30 6.20 Budgeted fixed overhead in 20x1 was $187,200 and budgeted production was 26,000 sleeping bags. The year's actual production was 26,000 units, of which 23,200 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $20,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method. Req 1 Req 2A Req 2B Req 3 Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. (Do not rou calculations. Round your final answers to 2 decimal places.) Product Cost Per Unit Absorption costing Variable costing Req 1 Req 2A Req 2B Req 3 Reconcile reported operating income under the two methods using the shortcut method. (Round your predetermined overhead rate to 2 decimal places.) Change in inventory (in units) x Predetermined fixed overhead rate Il Absorption-costing income minus variable-costing income unit increase x =