Required information Exercise 6-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below] Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34.000 units at a price of $150 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 66 per unit $25 per unit $9 per unit $ 546,000 per year $ 12 per unit $ 100,000 per year ces Exercise 6-3 (Algo) Part 1a 10. Assume the company uses absorption costing Determine its total product cost per unit Per unit product cost using: Absorption costing Exercise 6-3 (Algo) Part 1a 10. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Direct materials Direct labor Variable overhead Fixed overhead Total product cost per unit Absorption costing S 60 25 9 13 107 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Sales Income Statement (Absorption Costing) Cost of goods sold 2a. Assume the company uses variable costing. Determine its total product cost per unit. Per unit product cost using: Direct materials per unit Direct labor per unit Variable overhead per unit Total product cost per unit Variable costing 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Sales Less: Variable expenses Income Statement (Variable Costing) Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income