Question Two (65 Points) The following data relate to Jupiter Company, a new corporation. During the first year, the company produced 120,000 units and sold 100,000 units: Selling Price $40 Direct materials used $5 Direct labor Variable manufacturing overhead 1.5 Fixed manufacturing overhead 360,000 Selling and administrative expenses: Variable 0.5 Fixed 315,000 3 Required A. Compute the product cost under absorption costing and variable costing systems. (25 Points) B. Prepare the income statement using the variable-costing system. (40 Points)