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ACCT230 Week 7 Homework 1. Comparative income statementsvariable and absorption costing Highlands Manufacturing Company has determined the cost of manufacturing a unit of product to be as follows, based on norm Direct materials $10 Direct labor 8 Variable factory overhead 6 $24 Fixed factory overhead 6 $30 Operating statistics for the months of July and August are as follows: July August Units produced 6,000 4,000 Units sold 4,000 6,000 Selling and administrative expenses $25,000 $25,000 The selling price is $40 per unit. There were no inventories on July 1, and there is no work in process at August 31. Directions: Complete the comparative income statements on the next page for July and August for Highlands under: 1 absorption costing 2 variable costing o be as follows, based on normal production of 50,000 units per year: ess at August 31. or Highlands under