Saved Help Exercise 6-6 Variable and Absorptior Costing Unit Product Costs and Income Statements [LO6-1, LO6-2 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: ok Variable costs per unit: Manufacturing: Direct materials 10 Direct labor Variable manufacturing overhead Variable selling and administrative ces Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative $231,000 $141,000 During the year, the company produced 21,000 units and sold 17000 units. The selling price of the company's product is $40 per unit Required 1. Assume that the company uses absorption costing a. Compute the unit product cost b. Prepare an income statement for the year 2. Assume that the company uses variable costing a Compute the unit product cost b. Prepare an income statement for the year