8 ! Required information The following information applies to the questions displayed below.) Part 2 of 3 Barnes Company reports the following for its product for its first year of operations. 0.83 points Book Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 35 per unit $ 25 per unit $ 10 per unit $ 48,000 per year $ 3 per unit $ 20,000 per year Print References The company sells its product for $150 per unit Compute gross profit using absorption costing assuming the company (a) produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units. Gross profit using absorption costing Sales Cost of goods sold Gross profit (a) 2,000 Units Produced (b) 2,400 Units Produced and 2,000 Units Sold and 2,000 Units Sold 300,000 $ 300,000 11 Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory, Dion produced 20,000 units, and 2,000 units remain in ending finished goods inventory for May. Fixed overhead was $50,000. Variable selling and administration expenses were $30,000 and fixed selling and administrative expenses were $10,000, 0.83 points Sales (18,000 units) Cost of goods sold Gross profit Selling and administrative expenses Income eBook $360,000 300,000 60,000 40,000 $ 20,000 Print References Prepare an income statement using variable costing. DION COMPANY Income Statement (Variable Costing)