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Kelly Company manufactures and sells one product. The following information pertains to each of the company's first two years of

operations:

Variable cost per unit:

Direct materials

$$10\mathrm{.}50$

Fixed costs per year:

Direct labor

Fixed manufacturing overhead

$$416,000$ $$465,000$

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first

year of operations, Kelly produced $52,000$ units and sold $41,500$ units. During its second year of operations, it produced $52,000$ units

and sold $62,500$ units. The selling price of the company's product is $$43$ per unit.

Required:

Assume the company uses super$-$variable costing:

a$.$ Compute the unit product cost for Year $1$ and Year $2.$

b$.$ Prepare an income statement for Year $1$ and Year $2.$

Assume the company uses a variable costing system that assigns $$8\mathrm{.}00$ of direct labor cost to each unit produced:

a$.$ Compute the unit product cost for Year $1$ and Year $2.$

b$.$ Prepare an income statement for Year $1$ and Year $2.$

Reconcile the difference between the super$-$variable costing and variable costing net operating incomes in Years $1$ and $2.$

Complete this question by entering your answers in the tabs below.

Compute the unit product cost for Year $1$ and Year $2.$ Assume the company uses super$-$variable costing. $($Round your answers

to $2$ decimal places.$)$

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