Return to Problem 8-35 Variable-Costing and Absorption-Costing Income Statements (LO 8-2, 8-3, 8-4, 8-6) Great Outcloze Company manufactures sleeping bags, which sell for $65.60 each. The variable costs of production are as follows Direct material Direct Labor Variable manufacturing our head $19.70 10.70 6.30 Budgeted fixed overhead in 20xt was $154,200 and budgeted production was 24.000 sleeping bags. The year's actual production was 24000 units, of which 20,400 were sold. Variable selling and administrative costs were $1.50 per unit sold, fixed selling and administrative costs were $24,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing 2-o. 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 Answer is not complete. Complete this question by entering your answers in the tabs below