Problem 8-35 Variable-Costing and Absorption-Costing lncome Statements (LO 8-2, 8-3, 8.4, 8.6) Great Outdoze Company manufactures sleeping bags, which sell for $65.60 each. The variable costs of production are as follows: Budgeted fixed overhead in 20x was $180.000 and budgeted production was 25.000 sleeping bags. The year's actual production was 25,000 units, of which 21,700 were sold. Variable selling and administrative costs were $210 per unit sold; foxed selling and administrative costs were $26,000 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. Complete this question by entering your answers in the tabs below. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)